DBS analyst Alfie Yeo has recommended “fully valued” on Jumbo Group with a maintained target price of 21 cents after the restaurant operator reported a $8.2 million loss for the FY2020 on Nov 27.

At 27x FY2021F price-to-earnings (P/E), Yeo believes the counter is currently “overpriced”.

“At the current share price, the market is expecting earnings to stage a strong turnaround to $10.3 million profit based on a normalised 20x forward P/E,” he says, viewing the figure as being too optimistic.

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