STOCK CALL: JPMorgan downgrades Synear Food (Z75.SG) to Underweight from Overweight, cuts target price to S$0.35 from S$1.30. Broker says the frozen food maker is likely to continue to face margin pressure due to loss of market share to major rival Sanquan and rising advertising, labor costs; warns "the downside risk from these has yet to be built into the market consensus." Cuts FY08, FY09, FY10 earnings estimates by 13%, 24%, 23%, respectively. Says big target price cut reflects move to different valuation method, now uses P/E rather than DCF approach, new target implies forward P/E of 7X. Share down 6.0% at S$0.47.

Target price of 0.35 is lower than current price. Expects futher downside pressure. At 0.35, the P/E is 7X which is higher than most S-share issue.