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Update: Cityneon cites UOB Kay Hian's 'buy' call as possible spark for rally
A "BUY" call by UOB Kay Hian may have fuelled a rally in the shares of Cityneon Holdings, the event services provider announced on Friday after the market closed in response to a trading query from the Singapore Exchange (SGX).
Cityneon, whose shares jumped 11.1 per cent or 5.5 Singapore cents to close at 55 Singapore cents on Friday, said that UOB Kay Hian had initiated coverage on the stock and published a report with a target price of 72 Singapore cents.
Save for that report, Cityneon said that it was not aware of any other possible explanation for the trading activity in its stock.
In its report, UOB Kay Hian predicted strong earnings growth ahead for the company after its September 2015 acquisition of Victory Hill Exhibitions.
The acquisition gave Cityneon the rights to use the "Avengers S.T.A.T.I.O.N." and "The Transformers Experience" franchises and open more exhibits based on Marvel comics and Transformers characters, the analysts wrote.