CIMB Research starts coverage on Cuscapi with Outperform rating, target price 54 sen

CIMB Research starts coverage on Cuscapi with Outperform rating, target price 54 sen
Business & Markets 2013
Written by theedgemalaysia.com
Friday, 19 July 2013 10:30

KUALA LUMPUR (July 19): CIMB Research has initiated coverage on CUSCAPI BHD [] at 38 sen with an Outperform rating and target price 54 sen, and said the company was Asia’s leading F&B management system provider, with a potential 3-year EPS CAGR of 37.2%, led by "REV", an interactive tablet designed by the company.

REV, among others, enables restaurant diners to view an electronic menu and submit orders with minimal intervention.

In a note Friday, the research house said the commercial launch of "REV" had been scheduled for 2H13.

“We initiate coverage with an Outperform and target price of 54 sen, at 21x 2014 P/E, its 2-year average forward P/E. Its P/E premium to the market is backed by a 37.2% 3-year EPS CAGR.

“The company’s indirect exposure to Asia’s domestic F&B sector (particularly China’s), migration to the Main Board and stronger-than-expected demand for REV should provide stock catalysts,” it said.