DBS raised its target price for 0984.HK to HK $13.00 from HK $11.36 as market conditions continued to normalize.
Aeon had previously issued a profit warning and expected weak results in the first half of 2009 as the financial crisis had a negative impact on its business. After the announcement, DBS cut its core profit forecast for fiscal 2009 by about 25 per cent to HK $206 million and downgraded the stock to a full valuation from holding.
But DBS added that with Aeon sitting on HK $1.5 billion in net cash and a better economic outlook for the mainland and Hong Kong, it was expected to return to steady earnings growth by 2010.
Aeon rose 3.55 per cent to HK $14.60 yesterday.