Small mid caps still a steep 20% behind large cap stocks
This is despite the fact that Singapore is two years into the recovery from the global financial crisis, said DBS Vickers.
However, according to their analysis, interest in small cap stocks has picked up again since the market turnaround on March 18.
DBS Vickers believes SMCs should re-rate especially given stronger earnings growth potential of 18% for FY11F and 19% for FY12F compared to 11% in FY10A. More importantly, SMC's expected growth of 18% in FY11F exceeds 7% of growth for large caps.