Stock Buy Call: Tat Hong Holdings target price raised to 1.3 by DBS Equity Research!

DBS Equity Research said it has raised its target price for Tat Hong Holdings Ltd, which leases heavy equipment, to 1.30 sgd from 1.22 sgd after it reported strong results for the year to last March, reflecting robust demand in the Asia-Pacific region. In a note to clients, DBS said it is keeping its "buy" rating for Tat Hong, as demand should continue to grow over the next 2-3 years. It forecasts that the group's core earnings will grow 12 pct in the year to March 2007 and by 18 pct in the year to March 2008. "We expect the Middle East and emerging southeast Asian economies to lead demand for heavy equipment, given the large amount of infrastructure projects slated for development in these regions," DBS said. "Closer to home, Singapore's construction industry is also turning for the better," it said. At 11.09 am, Tat Hong was flat at 0.93 sgd, on volume of 890,000 shares.