Sweet, undervalued treat
$Delfi (P34.SG)$ By DBS research:
Maintain BUY with a higher TP of S$1.06 (previously S$0.96). We are raising our TP as we roll forward our PE peg to a 50-50 blend between FY21F/22F earnings. We maintain our PE peg of 18.0x (-0.6 SD) of its four-year historical mean). Delfi is currently trading at 13.9x forward earnings, which is -1.3 SD of its four-year historical mean.
Maintain BUY with a higher TP of S$1.06 (previously S$0.96). We are raising our TP as we roll forward our PE peg to a 50-50 blend between FY21F/22F earnings. We maintain our PE peg of 18.0x (-0.6 SD) of its four-year historical mean). Delfi is currently trading at 13.9x forward earnings, which is -1.3 SD of its four-year historical mean.
Where we differ: We believe sustained EPS growth will lead to the resumption of the relationship between its trailing-12- months (TTM) EPS and share price.
Potential catalysts: We have always seen DELFI as a strong takeover candidate due to its strong general trade market share in Indonesia and low trading liquidity.
Key Risks:
Currency flunctuations
Decline in consumer confidence
Currency flunctuations
Decline in consumer confidence
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