Y Ventures jumps on bullish report, 70ct target price

Singapore

SHARES of Catalist-listed e-commerce firm Y Ventures Group surged 7.5 Singapore cents or 17.05 per cent on Monday after PhillipCapital initiated coverage with a "buy" call and an eye-popping target price of 70 Singapore cents. The counter closed at 51.5 Singapore cents with some 4.9 million shares changing hands.

In its research note, the Phillip team said its target price was derived based on a ratio of 30 times estimated 2018 earnings as well as revenue growth of 50 per cent a year in 2018 and 2019. "We are pegging Y Ventures to other e-retailers from the US and Europe ... such companies can trade at an astronomical 50 times to 60 times PE (price-to-earnings)," the report said.