Goldman Sachs starts Fraser & Neave (F99.SG) at Neutral with $6.54 target; says differentiated mix, restructuring taking shape but now priced in.

“F&N’s unique pairing of Property and F&B enables the group to enjoy outsized development profits in an upcycle and find shelter in stable F&B income in a softer property market.” 

Notes, F&B is core to its roots, with market leading platform in beer driving earnings into 2011-2012 as property slows. 

 

Says there is further value in FNN commercial property, most tangible could be efforts to integrate China Square Central, Far East Square, given both of which located in bustling catchment area with potential to transform into new major downtown development. 

 

Adds, share price has outperformed STI by 41% YTD, owing to ongoing restructuring success; investors pricing in property arm spin-off will be disappointed medium-term. 

 

Shares off 0.2% at $6.37.