RHB Research lowers target price for Berjaya Food to RM1.95

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KUALA LUMPUR (June 14): RHB Research Institute Sdn Bhd has maintained its “Buy” rating on Berjaya Food Bhd at RM1.77 with a lower target price of RM1.95 (from RM2) and said Berjaya Food’s FY19 results underperformed against forecasts due to higher-than-expected losses at Kenny Rogers Roasters (KRR).

In a note today, the research house nonetheless said KRR’s overall performance improved with smaller losses, whilst breadwinner,

“Starbucks continued to anchor earnings with a solid performance.

“Valuations are not overly demanding, with the stock trading below its 5-year mean despite positive growth prospects and operational improvements being delivered,” it said.