02-10-2012 12:02:12
STOCKS NEWS SINGAPORE-UOB raises target on Super Group to S$3.00
UOB Kay Hian raised its target price on Super Group Ltd
to S$3.00 from S$2.55 and maintained its 'buy' rating, citing the
company's good execution track record and upside potential from
rebranding efforts.
Super manufactures, packages
and distributes instant cereal flakes, beverages, coffee powder and
other convenience food products. Its shares were up 2.7 percent at
S$2.30 on Tuesday and have surged 75 percent so far this year.
UOB said a successful rebranding exercise could allow Super to
gradually raise product prices, which are currently 8-10 percent below
the levels of peers such as Nestle. This is critical amid volatile raw
material prices, UOB noted.
The brokerage said it also sees
promising growth prospects for consumer branded goods in key markets
such as Thailand and Myanmar, which could deliver top-line growth of
more than 10 percent per annum.
