RHB Group Research is keeping its “buy” recommendation on Food Empire with a target price of 75 cents, as analyst Juliana Cai believes that the group is poised for earnings recovery I 3QFY2020 and its current share price of 60 cents offers a good entry opportunity for investors looking to capture potential upsides.

Furthermore, the group has been also performing share buy-backs in recent weeks, which signals management’s confidence for 2HFY2020 and that it deems the current valuation as cheap. At this price level, the analyst views the valuations of about 10 times and 8.4 times FY2020 and FY2021 P/Es “very attractive” for a consumer staples group that should generate stable earnings despite these challenging times.

See also: Food Empire's coffee empire is gradually strengthening as lockdown measures ease

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