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