Brokers' Take

Brokers' Choice

Recent Hyflux sell-off overdone, says UBS

UBS INVESTMENT RESEARCH, Aug 18

HYFLUX has won the confidence of UBS Investment Research, which has reiterated its 'buy' recommendation, saying the recent sell-down of the stock was overdone.

Its shares retreated 16 per cent in recent weeks, after the water treatment firm's second-quarter results failed to impress the market.

UBS said: 'As the firm undertakes bigger projects, earnings are likely to be lumpy as the gestation period is longer and revenue will be booked only when the project passes a certain milestone.' It also noted Hyflux's expanding order book.

Rating: BUY