SINGAPORE (Feb 14): DBS Group Research is keeping its “buy” recommendation on food court operator Koufu, with a reduced target price of 84 cents from 88 cents previously.

In a Thursday report, lead analyst Alfie Yeo says, “We have reduced our earnings forecasts in view of lower footfall from casino operators undergoing a 15-day suspension of gaming operations in Macau. We believe Koufu will be affected marginally with close to 10% of its revenue coming from Macau.”

On Feb 4, Macau directed all casino operators to suspend operations for two weeks until Feb 20 to help curb the spread of the coronavirus. Macau’s chief executive, Ho Iat-seng, also warmed that the closures may extend if the virus continued to spread.

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