Brokers' take

Frencken Group Ltd | Outperform (upgraded) Sept 11 close: S$0.695 Target price: S$0.81 KGI Securities, Sept 10

FRENCKEN'S share price has fallen 10 per cent since our last update.

The discount to peers has once again widened to 20-30 per cent and we now believe risk-reward dynamics are favourable.

Furthermore, our technology-supply chain analysts in Taiwan are calling for a bottom in earnings for the global electronics manufacturing services (EMS) companies in Q3 2019.

We upgraded Frencken as its share price now offers a good entry point, with an improved inventory level among top EMS players as the basis for a recovery of earnings i…