Food Empire Holdings' stock surged 3.56% intraday on Tuesday, marking a significant upward movement.

The rally follows CLSA's initiation of coverage on the stock with an outperform rating and a target price of S$3.60. The brokerage highlighted Food Empire as an emerging-market coffee platform with franchises like MacCoffee and Cafe Pho, and noted its control over key parts of the manufacturing chain and local distribution networks in markets where affordability and convenience are key.

CLSA's analyst Mahir Murtaza stated that the company has built a platform capable of converting rising coffee consumption across emerging markets into sustained revenue growth, strong cash generation, and self-funded expansion.