SINGAPORE (22 July): RHB Research has maintained a “neutral” call on F&B group Japan Foods (JFOOD) with a lowered target price of 33 cents, down from the previous target price of 35 cents.

Analyst Shekhar Jaiswal said even though the government’s support measures will assist in cushioning the short-term impact of the Covid-19 pandemic, adoption of safety measures related to social distancing at Japan Foods’ outlets, as well as weak consumer discretionary spending, will dampen prospects and curtail FY21 growth for the group.

However, he says the long-term trend seems positive, as the group’s net cash balance sheet should enable JFOOD to enhance delivery services and refocus on growth when competition and costs are lower in FY22.

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