SPH – BT

OCBC raises SPH's target price to $4.63

SINGAPORE – OCBC has raised its target price for Singapore Press Holdings to $4.63 from $4.31 and kept its 'buy' rating, citing stronger than expected third-quarter earnings and positive outlook for the rest of the fiscal year.

'In view of the strong results and positive outlook, we therefore believe that the group is likely to gain further traction within its various business segments,' said OCBC in a report.

But OCBC noted newsprint prices are likely to rise due to cost pressures, hence potentially increasing newsprint charge-out rates. Staff costs are also expected to rise amid higher bonus provisions.

SPH shares have risen about 7 per cent year-to-date to its last closing price of $3.93.

On Monday, SPH said its February-May net profit rose 29.9 per cent from a year ago to $164.6 million (US$119.3 million). — REUTERS

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