Brokers' take

Innovalues Ltd | Add (Upgrade)

Target price: S$1.03

Oct 13 close: S$0.945

CIMB Research, Oct 12

WE believe Innovalues is on track to attain 10-12 per cent 2016-17 forecast sales growth with gross margin improvement to 32 per cent, based on our recent check with management. Channel checks with a Singapore-listed peer and read-through from industry happenings support a favourable outlook for Innovalues.

Ongoing merger and acquisition (M&A) discussion is a near-term catalyst. A historical transaction price to earnings ratio range of 12-16 times would imply a possible valuation range of S$0.9…