CSE Global Share Selloff Seems Unwarranted — Market Talk

CSE Global's share selloff following the resignation of its lead independent director seems unwarranted to UOB Kay Hian's John Cheong and Heidi Mo. They note that the Singapore-listed stock has shed about 20% since the director left in early June, citing "unresolved differences of views with regard to working with controlling shareholders." The analysts acknowledge the governance gap but maintain their investment thesis, as the systems integrator's operational growth remains intact. They also expect results to recover in 2H after a likely softer 1H, as the company's roughly S$700 million order book should convert into revenue. CSE Global provides electrification, communications and automation solutions. UOB KH maintains its buy rating and S$1.79 target price. Shares fall 1.5% to S$1.31. (megan.cheah@wsj.com)