CIMB in a Sept 28 research report says: "Goodpack's trading history shows that weak sentiments could send valuations down to a trough of 5.0x P/E, as in 2008, despite intact fundamentals. It is now trading at 12.6x CY12 fully-diluted EPS.
"In view of overall market weakness, we have lowered our target from 14.4x CY12 fully-diluted EPS (blended trough valuations of 5.0x and 4-year historical forward average of 18.5x) to 10.3x CY12 fully-diluted EPS, one standard deviation below its 4-year historical forward average, while maintaining our earnings forecasts.
"Our target price falls from $1.75 to $1.30. Our downgrade notwithstanding, we believe Goodpack continues to have earnings stability and growth prospects. DOWNGRADE TO UNDERPERFORM."
"In view of overall market weakness, we have lowered our target from 14.4x CY12 fully-diluted EPS (blended trough valuations of 5.0x and 4-year historical forward average of 18.5x) to 10.3x CY12 fully-diluted EPS, one standard deviation below its 4-year historical forward average, while maintaining our earnings forecasts.
"Our target price falls from $1.75 to $1.30. Our downgrade notwithstanding, we believe Goodpack continues to have earnings stability and growth prospects. DOWNGRADE TO UNDERPERFORM."
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