Stock Outperform Call: Want Want with price target of 1.9 USD by CIMB-GK

CIMB-GK Research has upgraded its rating on Want Want Holdings Ltd to "outperform" from "neutral" and its target price to 1.90 usd from 1.45 on the back of better earnings projections for 2007 and 2008. "We kept our 2006 forecast intact and boosted 2007-2008 forecast by 12 pct and 11 pct to factor in the recovery of margins and higher sales assumptions," CIMB-GK said in a client note. "We see positive sales momentum in coming quarters outpacing cost pressures and also anticipate maiden contribution from its non-food and beverage segment in late 2007 arising from sales of property related projects, " it added. The brokerage expects Want Want's net profit to grow to 124.3 mln usd this year from 113.8 mln last year, and further to 159.9 mln next year, and to 182.7 mln in 2008. At 11.29 am, Want Want was up 0.08 usd or 4.94 pct at 1.70 on volume of 552,000 shares.