[ET Net News Agency, 29 June 2018] Goldman Sachs cut its target price for Yue Yuen
Industrial (00551) to HK$24 from HK$26, and retained its "buy" rating. Meanwhile, it
lowered its target price for Stella International Holdings (01836) to HK$10.1 from
HK$10.4.
The research house also cut Yue Yuen's and Stella's EPS forecasts by 3-7% in 2018-20 to
reflect order pressure and negative operating leverage. The target price cuts reflected
lower earnings.
Although US retailers generally showed an improving SSSG and selective categories such
as active wear had an even stronger growth, Goldman said it is worth noting that most
retailers still kept a cautious view on inventory management and did not aggressively
build on it.
Therefore, Goldman believes in this improving macro environment, popular brands will
gain momentum and OEMs which have exposure to those brands will benefit. The research
house is still cautious on other suppliers as the better retail backdrop has not fully
translated into inventory restocking as of now. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00551 YUE YUEN IND
Nominal 
11.940 +0.340 (+2.931%) Others
29/06/2018 15:40
[I-bank focus]Goldman cuts TPs for Yue Yuen & Stella (01836)
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