Nomura raises Fraser & Neave (F99.SG) target price to S$7.18 from S$6.55, reflecting increased marked-to-market valuation of its listed entities, increased valuation from recent property purchases, says Dow Jones.

Nomura is maintaining its Buy rating, highlights group’s attractive F&B franchises, property assets.

Research house says group “would not be averse to returning surplus capital back to shareholders through higher dividends.” Adds advent of Kirin Holdings as shareholder should focus investor attention on potential of group’s F&B activities; alliance could result in more product launches, leveraging distribution channels of both companies.

“We believe F&N is growing its F&B business to be as large as its property business via organic growth and possible M&A.” Raises FY10-FY12 earnings forecasts by 5%-7%.

Shares +2.3% at $6.34.