SINGAPORE (Oct 13): OCBC is downgrading Singapore Press Holdings to “hold” with $2.93 target price after its stock price rebounded following a “buy” upgrade by the research house three weeks ago.
Management says SPH will complete a 10% staff reduction by this calendar year, incurring retrenchment costs of $13 million. The group will also invest for new growth in terms of digital, data analytics, radio broadcasts, video and content marketing capabilities to help the group better meet the changing needs of their market.
While there is no denying the impact of digital disruption on the group’s core media earnings which continued to decline over the latest quarter, OCBC says the management team’s approach in rationalising the business is “mostly realistic and sound”.
