Sheng Siong shares close 4.2% lower after OCBC downgrade
The stock’s forward price-to-earnings ratio is more than two standard deviations above its historical average
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[SINGAPORE] Shares of Sheng Siong dropped as much as 6 per cent on Wednesday (Feb 11), two days after OCBC downgraded its call on the stock.
The counter went as low as S$2.68 at 9.10 am, falling S$0.17 from its Tuesday closing price of S$2.85, before paring some losses, reaching S$2.74 by the midday trading break.
It finished the day 4.2 per cent or S$0.12 lower at S$2.73.
OCBC analyst Chu Peng on Monday downgraded it to a “hold”, with its last closing price then at S$2.90.
While Sheng Siong shares rose about 60 per cent in 2025, outperforming the Straits Times Index’s 23 per cent gain, Chu said the supermarket chain’s “valuations look demanding”.
The analyst noted that the stock has a forward price-to-earnings ratio of 24.8, which is more than two standard deviations above its historical 19.6 average.
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“We maintain our earnings forecasts, but raise the fair-value estimate from S$2.77 to S$2.89 on lower cost of equity assumption,” said the note.
Sheng Siong is set to release its financial results on Mar 2.
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