Wednesday, August 8, 2012

Fraser & Neave Holdings: Upgrade to Hold - Takeover Potential

F&N - Takeover Potential
  • Share price supported by takeover speculation. Fraser & Neave Holdings' (FNH) 9MFY12 recurring net profit of MYR101.5m (-61% YoY) was within our expectation, making up 57% of our full-year forecast on an anticipated stronger 4QFY12.
  • With M&A potential on the stock, we upgrade our target price to MYR20.79, based on 25x 2013 PER (18.5x previously) after imputing a M&A premium.
  • Our call is upgraded to a Hold (from Sell) pending further developments.

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Source: Maybank Research - 8 August 2012

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