UOB Kay Hian analyst Clement Ho has downgraded iFAST Corporation to “sell” with an unchanged target price of $5.12, as Ho deems valuations on the corporation as “expensive”.

“Our target price of $5.12 is based on a valuation peg of 40.3 times 2021 price-to-earnings (P/E), or 2 standard deviation above its 5-year mean,” writes Ho in a Feb 9 report.

“At the current price, however, valuation for iFAST is expensive at 51.1 times forward P/E. However, we note that earnings derived from the implementation of the e-MPF platform have not been incorporated in our forecasts, given the lack of details at this stage,” he adds.

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