DFI Retail Group is likely to benefit from its streamlined business portfolio, DBS Group Research analysts say in a report.

The Asian retailer has been actively reshaping this portfolio to focus on operating control and improving return on capital employed and total shareholder return, they say.

Over past few years, the Singapore-listed company has streamlined operations by divesting low-margin and low-advantage businesses.

DBS sees ample room for DFI Retail Group to drive earnings growth by improving operational efficiencies of over US$100 million.

DBS raises the stock's target price to US$3.60 from US$3.00, with an unchanged buy rating.

Shares are 0.7% higher at US$2.82.