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Take profit on BreadTalk before rising capex & start-up costs set in, advises RHB

Michelle Zhu
Michelle Zhu3/19/2018 10:23 AM GMT+08  • 2 min read
Take profit on BreadTalk before rising capex & start-up costs set in, advises RHB
SINGAPORE (Mar 19): RHB advises investors to sell BreadTalk and take profit given its current share price is approaching the target of $2.
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SINGAPORE (Mar 19): RHB advises investors to sell BreadTalk and take profit given its current share price is approaching the target of $2.

The research house recommends buying back the stock when prices are closer to $1.70, which implies six times core EV/EBITDA plus investment properties’ net asset value (NAV).

This is due to expectations of rising capex and start-up costs which could result in a near-term overhang, said analyst Juliana Cai in a Monday report, especially since the group has more joint ventures (JVs) in the pipeline for the year ahead.

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