Super Group: Following Super Group's FY14 earnings beat last Fri, the counter saw several broker upgrades, which suggests that the the counter may have bottomed out over 2014.
The street was previously bearish on Super on concerns over its steep valuations, currency weakness and higher taxes, which could translate to declining margins and cap its earnings growth.
Market watchers have now switched to a more positive outlook, backed by the return of growth in its core markets, supported by increased contributions from new markets, China and Vietnam.
Maybank-KE reckons the current 17x forward P/E against its 40x peak valuation may have priced in near-term risks, including higher GST in Malaysia, fluctuating commodity prices, competition and execution risks.
The house believes that lower market expectations, better growth potential, balance-sheet health and a seasoned management are all reasons to buy the stock now.
Latest broker ratings:
Maybank-KE upgrades to Buy from Hold, raises TP to $1.60 from $1.02
DBS Vickers upgrades to Buy from Hold, raises TP to $1.38 from $ 1.15
CIMB upgrades to Hold from Reduce raises TP to $1.25 from $0.83
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