Analysts less optimistic on Sheng Siong, Dairy Farm as supermarket craze eases

Singapore

ANALYSTS have cut their calls on Sheng Siong Group and Dairy Farm International, after the retailers posted a drop in net profits in the half-year ended June 30.

RHB downgraded supermarket operator Sheng Siong to "neutral" from "trading buy" and slashed its target price by S$0.34 to S$1.61. Phillip Securities trimmed its target price slightly to S$1.69 from S$1.71 previously, but maintained its "accumulate" call on the back of record-high gross profit margins in Q2.