Maybank Kim Eng raised its target price for supermarket operator Sheng Siong Group Ltd to S$0.60 from S$0.52 and kept its 'buy' rating, citing its high growth potential and improving efficiency.
By 0152 GMT, Sheng Siong shares were unchanged at S$0.49, and have gained 11.4 percent since the start of the year, compared with the FTSE ST Small Cap Index's 21.4 percent rise.
Sheng Siong is able to maximise its store space while designing each store to suit different customer demographics in the area, Maybank noted.
The supermarket operator also offers the lowest prices in Singapore, while investing in technology such as electronic price tagging to improve its efficiency and allow high inventory turnover.
Maybank is pegging Sheng Siong's valuations to competitor Dairy Farm International's 12-month forward price to earnings ratio of 27 times, with a 20 percent discount.
0953 (0153 GMT)