CGS-CIMB upgrades Dairy Farm to 'hold'

Singapore

CGS-CIMB, in a note on Tuesday, upgraded its rating on Dairy Farm International to "hold" from "reduce" and raised its target price to US$5.45 from US$4.38 as most of the company's main markets slowly ease out of Covid-19 lockdowns.

CGS-CIMB analyst Cezzane See has forecast a higher price-to-earnings ratio of 20 times for FY2021, up from the previous 17 times. This is close to -1 standard deviation from its 2007 to 2019 average, she said.