DFI Retail's Share-Price Weakness Likely Doesn't Reflect Company-Specific Issues

Dow Jones11:53

0353 GMT - DFI Retail's year-to-date share-price weakness likely reflects broader market flows away from consumer discretionary names rather than company-specific issues, say CGS International analysts in a note. Shares of the retailer, which operates brands such as 7-Eleven in certain Asian markets, are 15% lower year-to-date. The market has likely largely absorbed an expected 2027 earnings dilution from DFI divesting its stake in Maxim's while acquiring Starbucks, the analysts say. The analysts are confident DFI would be able to deliver its full-year underlying profit target of US$295 million-US$305 million. CGSI retains its add rating and US$5.50 target price on the company's Singapore-listed stock, which rises 0.9% to US$3.36.

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