SINGAPORE (Feb 26): OCBC is maintaining its “sell” call on Breadtalk with 96 cents fair value as start-up costs remain a drag and potential for more consolidation.

In a Friday report, OCBC says after years of focus on revenue growth, management is turning efforts to rebranding, cost rationalisation and productivity initiatives.

“While we are heartened by Restaurant’s contribution, we are still seeing usual drags on other segments from gestation costs, depreciation as well as potentially more consolidation. Thus we prefer to wait for a steadier state first,” says lead analyst Jodie Foo.

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