Food Empire Holdings Limited (SG:F03) is a food and beverage sector company with a worldwide presence in branding and manufacturing. The company is focused on branded instant beverages, frozen convenience foods, confectionery, and snacks.
The company has reported strong numbers in 2022, mainly driven by effective cost management, higher revenues, and better profitability across many segments. This was clearly visible in its share prices as well, which grew by 88% in the last year, including a 96% growth spurt in the past six months.
Ahead of its Q1 earnings for 2023 on May 12, analysts are looking at a stronger quarter for the company and expect the share price to rise further.
Let’s explore some more details.
Technical Analysis Suggests a Buy
According to the technical analysis of the stock on TipRanks, the overall summary indicates a Buy in the timeframe of one week. It is based on a Strong Buy signal from the moving averages against a Strong Sell signal from the oscillators.
The summary has a total of 13 bullish, one neutral, and eight bearish signals.
Under the stock’s technical analysis, the 10-day exponential moving average is 0.94 as compared to its current price of S$0.98, indicating a Buy. Likewise, the exponential moving averages over extended periods, such as 100 and 200 days, also indicate a recommendation to Buy.
A Positive Outlook from Analysts
28 days ago, Maybank analysts Jarick Seet and Eric Ong reiterated their Buy rating on the stock and predicted growth of 31.6% in the share price. According to the analysts, the company’s core markets, such as Russia and Vietnam, will continue to drive strong demand for its products.
Seet and Ong also expect the contribution from Vietnam to grow by 20% in 2023 on a year-over-year basis, thanks to enhanced marketing activities in the region.
Maybank analysts also expect the dividends to grow in the near future, riding on “higher cash flow and a stronger balance sheet.”
UOB Kay Hian analyst John Cheong also holds an optimistic view of the stock after its record earnings in 2022. He has even raised his core earnings forecast by 33% and 41% for 2023 and 2024, respectively.
Cheong has a Buy rating on the stock and predicts an upside of 30% in the share price.
Is Food Empire Stock a Good Buy?
According to TipRanks, F03 stock has a Moderate Buy rating based on two Buy recommendations.
At an average target price of S$1.29, analysts predict a 31% rise in the share price for the next year.
Ending Thoughts
Despite a record performance in its results and share price appreciation, analysts feel there is still room for growth. The factors that could trigger growth include the resolution of the conflict in Ukraine, diversified revenue growth in markets, and a desirable acquisition target for larger F&B companies or private equity funds.
