0302 GMT - DFI Retail's earnings growth is likely to moderate in the coming quarters, says DBS Group Research's Chee Zheng Feng in a note. While the retailer's 1Q underlying profit growth tracked ahead of DBS's expectations, the strong gain was partly driven by significantly lower financing costs following DFI's debt repayment in February last year, the analyst notes. The margins of its most profitable division, health and beauty, could also be pressured, which may be viewed poorly by investors, he adds. However, the performance of DFI's other divisions--including food and convenience stores--should more than offset this weakness, he says. DBS retains its buy rating and $5.00 target price on DFI's Singapore-listed shares, which rise 2.6% to $4.27. (megan.cheah@wsj.com)
(END) Dow Jones Newswires
April 21, 2026 23:02 ET (03:02 GMT)
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