Hot stock: OSIM continues to get battered, down 5%
THE battering on the share price of lifestyle products group OSIM International continued on Thursday, a day after it eroded by 14 per cent.
At 2:35 pm, OSIM was trading at around S$1.835, down 10 cents or 5.17 per cent. More than 12 million shares changed hands.
The group, famous for its luxurious massage chairs, had on Tuesday reported a 28 per cent drop in net profit to S$16.4 million for its third quarter ended Sept 30, 2014.
CIMB Research said in its report on OSIM that the company was still a great free cash flow business, but that the blot in earnings would weigh down on share price for now.
"We think profits will stay weak before it gets better. There will be a lower share price to buy into this company,'' CIMB said. "We downgrade to 'Hold' on a reduced target price.''
Its new target is now at S$2.37 a share, down from S$4.05 previously.
Meanwhile, Macquarie Group has kept its "Underperform" rating on the stock and lowered its price target to S$1.90 a share from S$2.30.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Honda to spend US$11 billion on EV strategy in Canada
GlaxoSmithKline sues Pfizer and BioNTech over Covid-19 vaccine technology
Mapletree Industrial Trust Q4 DPU rises 0.9% to S$0.0336
Nasdaq’s profit falls as shaky economy keeps IPO revival elusive
iFast Q1 net profit surges on ePension unit performance
Suntec Reit Q1 DPU down 13% to S$0.01511 in absence of capital distribution