Food Empire Could Gain Market Share in Russia Coffee Sector

Dow Jones09-25

0804 GMT - Food Empire could gain market share in the Russian coffee sector after one of its peer's business in the country was disrupted, say UOB Kay Hian analysts in a note. Russia unexpectedly seized Nestle's local operations last week, The Wall Street Journal reported. Food Empire, a Singapore-listed instant coffee maker that makes around 30% of its revenue from Russia, said its operations in the country are unaffected but its shares declined around 10% on Monday, the UOB KH analysts say. The share-price correction appears overdone, as the market hasn't priced in Food Empire's potential to gain market share after Nestle's operations were disrupted, they add. UOB KH retains its buy rating and 3.49 Singapore dollar target price. Shares fall 1.0% to S$1.96.

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