Brokers take

First Resources | Neutral Target price: S$2.30 Nov 2 close: S$1.96 Credit Suisse, Nov 2

WE reduce our rating on the stock to "neutral", even though the target price has been raised to S$2.30 (from S$2.10), equalling 16 times 2018E price-to-earnings (P/E) ratio, due to its already limited potential upside. We derive our target price using the two-year average multiple of the stock (2015-17), which we believe is warranted to see valuation normalisation with the fluctuation of crude palm oil prices. The new target price equates to eight times enterprise value-to-earnings before interest, tax, depreciation and amortisation (EV/Ebitda) 2018E with the EV/hectare at US$15,269. Our earnings per share (EPS) declines 13.6 per cent/15.7 per cent in 2017-18E.

OUE Hospitality Trust | Buy Target price: S$0.85 Nov 2 close: S$0.815 DBS Group Research, Nov 2