FJ Benjamin: KE maintains Buy. Raises target to $0.66 from $0.45, based on earnings upgrades. FJB is a strong recovery play, and could surpass pre-crisis earnings by tapping into the retail boom in Asia. In particular, mgt is upbeat on its 4 new boutiques in Marina Bay Sands which it secured at attractive rental rates, and is well positioned to capitalize on the spike in tourist arrivals. Positive catalyst could come from possible higher dividends...
We also view FJB as an attractive M&A candidate, given its superior retail network, sizeable brand portfolio and strong balance sheet.
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