Concerns Around DFI Retail's Limited Catalysts, Possible M&A Seem Overblown
Dow Jones
Yesterday
0210 GMT - Concerns around DFI Retail Group's limited near-term catalysts or potential mergers and acquisitions appear to be overblown, says DBS Group Research's Zheng Feng Chee in a note. The market likely hasn't factored in the retailer potentially raising its medium-term earnings target by at least 10%, the analyst says. He expects DFI--which operates the 7-Eleven convenience-store brand in select markets--to raise its 2028 core earnings guidance range to US$340 million-US$380 million from US$310 million-US$350 million. He also reckons DFI is unlikely to launch any major acquisitions, as key opportunities seem to be earnings dilutive. DBS maintains its buy rating and US$5.00 target price on DFI's Singapore-listed stock. Shares rise 0.8% to US$3.65.
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