Food Empire Holdings' earnings outlook appears positive, UOB Kay Hian analysts say in a research report.

The analysts cite the food and beverage product manufacturer's ongoing investments in brand building and the market leadership of Food Empire's brands.

The Singapore-listed company's expansion of four new manufacturing facilities in Malaysia, Kazakhstan, Vietnam and India by 2028 will also drive growth, the analysts say.

Moreover, its second supplemental agreement for its redeemable equity note will eliminate earnings volatility from 3Q onward.

The brokerage raises the stock's target price to S$2.40 from S$1.98 to reflect a valuation roll-over, with an unchanged buy rating.

Shares are 0.4% lower at S$2.25.