SINGAPORE (Feb 5): UOB Kay Hian is initiating coverage on instant coffee manufacturer Food Empire Holdings with a “buy” recommendation and a target price of 89 cents – representing a potential upside of close to 35%.

“At current prices, the stock trades at an attractive valuation at 9.2 times 2020F price-to earnings (PE), significantly lower compared to peers’ average of 22 times,” says lead analyst Joohijit Kaur in a Feb 5 report, calling Food Empire a “huge bargain”.

Food Empire’s flagship brand, MacCoffee, is the leading 3-in-1 coffee mixes brand in Commonwealth Independent States (CIS) countries, and commands the largest market share of Russia’s instant coffee market.

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