SINGAPORE (Dec 8): DBS Group Research is maintaining its “hold” rating and target price of 37 cents for Del Monte Pacific as its US operations see falling sales.

DBS analysts Andy Sim and Alfie Yeo noted that while the group’s Asia Pacific operations continues to grow, key catalyst for the stock lies in the improved performance at its US-based Del Monte Foods Inc (DMFI) and the success of its deleveraging efforts.

To recap, group revenue fell 4.6% to US$636 million ($901 million) in 2QFY17, as its main revenue contributor DMFI saw saless decline 9.3% to US$492 million. However, its Asia Pacific operations remained healthy, posting a 21% gain in revenue to US$141 million.

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