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Hot stock: OSIM continues to get battered, down 5%

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The battering on the share price of lifestyle products group OSIM International continued on Thursday, a day after it eroded by 14 per cent.

THE battering on the share price of lifestyle products group OSIM International continued on Thursday, a day after it eroded by 14 per cent.

At 2:35 pm, OSIM was trading at around S$1.835, down 10 cents or 5.17 per cent. More than 12 million shares changed hands.

The group, famous for its luxurious massage chairs, had on Tuesday reported a 28 per cent drop in net profit to S$16.4 million for its third quarter ended Sept 30, 2014.

CIMB Research said in its report on OSIM that the company was still a great free cash flow business, but that the blot in earnings would weigh down on share price for now.

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"We think profits will stay weak before it gets better. There will be a lower share price to buy into this company,'' CIMB said. "We downgrade to 'Hold' on a reduced target price.''

Its new target is now at S$2.37 a share, down from S$4.05 previously.

Meanwhile, Macquarie Group has kept its "Underperform" rating on the stock and lowered its price target to S$1.90 a share from S$2.30.

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