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Broker's Take: Osim downgraded from 'buy' to 'neutral'

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RHB Research on Wednesday downgraded its "buy" call on Osim International to "neutral" with a target price of S$2.

RHB Research on Wednesday downgraded its "buy" call on Osim International to "neutral" with a target price of S$2.

This comes after the lifestyle company's first-quarter 2015 net profit fell 53 per cent to S$13.5 million year on year and was significantly below expectations, even though RHB had already expected a muted set of results.

Consumer sentiment remains weak in its key markets, resulting in negative operating leverage, it said.

"As the market is likely to react negatively to its latest numbers, we believe S$1.60 would be an excellent entry price," RHB said.

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