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How BreadTalk’s share price can only get hotter

Michelle Zhu
Michelle Zhu4/4/2017 01:36 PM GMT+08  • 2 min read
How BreadTalk’s share price can only get hotter
SINGAPORE (April 4): DBS Vickers Securities is reinstating coverage on BreadTalk Group with a “buy” recommendation and a target price of $1.69 following the counter’s turnaround in 2H16 earnings, on the notion that its earnings recovery momentum wil
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SINGAPORE (April 4): DBS Vickers Securities is reinstating coverage on BreadTalk Group with a “buy” recommendation and a target price of $1.69 following the counter’s turnaround in 2H16 earnings, on the notion that its earnings recovery momentum will spill over to FY17F to lift margins and improve earnings quality.

In a report on Tuesday, analysts Alfie Yeo and Andy Sim say they believe BreadTalk is well-positioned to capitalise on growing food consumption trends in Asia, as well as more opportunities to expand in China.

More importantly, they reckon the group is poised for earnings growth this year after “dismal performances” in FY15 and 1H16, particularly on the recovery of its food court business segment through outlet rationalisation in China.

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