These consumer stocks did well in 2016. What’s next for them?

SINGAPORE (Dec 6): CIMB is “overweight” on Singapore’s consumer sector while opting for a stock selection strategy based on earnings growth.

The research house believes that all consumer stocks under the research house’s coverage “did very well in 2016” by registering returns of about 20% and above – with the exception of Delfi, which trades at lofty valuation” of 28-30x forward.   

In a Monday report, analyst Jonathan Seow posits that cost pressures are somewhat easing, even as consumer sales continue to falter amid the weak global environment and macro-uncertainty.

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