Food Empire surges 5.4% after Maybank raises target price
Shares of Food Empire Holdings (FEH) surged as much as 5.4 per cent on Thursday (Sep 18), two days after Maybank raised its target price.
The stock climbed S$0.14 to an intraday high of S$2.73 as at 11.10 am, later paring some of the gains to be at S$2.67 as at 1.50 pm.
On Tuesday, Maybank analyst Jarick Seet raised the target price of company’s shares to S$2.92, from S$2.62, and maintained a “buy” call after revisiting its Vietnam operation.
Seet said that the positivity stemmed from FEH being on track to deliver an estimated US$100 million of revenue in 2025 – becoming the third-largest instant coffee player in Vietnam – and its plans for product innovations to grow revenue in new segments.
He said: “With its strong pipeline of projects ahead, we believe FEH will continue to grow steadily in (the) coming years.”
“A bonus share issue may also be a possibility to improve liquidity and reward shareholders,” he added.
UOB Kay Hian last month also raised its target price for FEH to S$2.73, from S$2.40, and maintained its “buy” call as its first-half results beat expectations. The company on Aug 13 posted top-line growth for the first half of 2025.
Sudeep Nair, FEH group chief executive, said that the company is “on track to deliver... another record-breaking performance in FY2025” after the results.
Last year, FEH invested US$80 million in a new freeze-dried soluble coffee manufacturing facility in Vietnam.
