BreadTalk

BreadTalk: OCBC maintains Sell with $0.77 TP. Note that while share price seemingly poised to cross the S$1 barrier again, remain steadfast in analysis and assertion that valuations are stretched at current levels. While the group’s growth proposition appears attractive, realizing future potential takes time, and more importantly, carries significant operating and execution risks. Its operating margins have also remained in the low single-digit region. Furthermore, the group’s valuation is expensive when compared to more established regional peers that compete in the same markets. House maintain SELL rating and will look to re-rate the stock only when its margins arrest their decline and operations approach a steady-state. A takeover angle at this juncture is also unlikely as house do not envision MINT launching a takeover bid anytime soon in the coming quarters at current price levels.