According to Food Empire, the company is on track to reach its fifth straight financial year of record revenue.
As Food Empire’s 9MFY2025 revenue surpassed CGS International’s (CGSI) expectations at 82% of its full-year forecasts, analyst William Tng has raised his FY2025, FY2026 and FY2027 forecasts by 12.1%, 7% and 1.9% respectively. Given the higher forecasts, Tng’s target price is lifted to $3.18 from $3.09 previously. His valuation remains unchanged at 3 standard deviations (s.d.) above the average FY2027 P/E of 17 times (from FY2017 to FY2025). The analyst has maintained his “add” call.
“In our view, Food Empire should consider a bonus issue to improve its trading liquidity when FY2025 results are announced in February 2026,” Tng writes.
UOB Kay Hian analysts John Cheong and Heidi Mo have maintained their “buy” call and an unchanged target price of $3 after Food Empire’s 9MFY2025 revenue formed 81% of their full-year estimates.
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Due to the higher-than-expected 3QFY2025 performance, Cheong and Mo have raised their revenue and earnings forecasts by 2% to 3% for FY2025 to FY2027.
“Food Empire trades at a 16.5 times FY2026 P/E, [representing] a deep 35% discount to [its] regional peers’ average of 24.7 times,” the analysts write.
As at 3.57pm, shares in Food Empire are trading 3 cents higher or 1.17% up at $2.59.
