Food Empire Holdings (F03.SI) saw its stock price surge by 3.38% during intraday trading, following a positive analyst report from RHB Bank Singapore. The coffee and snack maker's shares rallied on the back of an upgraded target price and optimistic outlook for the company's growth prospects.

Alfie Yeo, an analyst at RHB Bank Singapore, maintained a "buy" rating on Food Empire while significantly raising the target price from $1.23 to $1.67. This substantial increase in the target price reflects the bank's confidence in the company's long-term growth potential, which is underpinned by expanding production capacity.

The analyst's report highlighted Food Empire's steady sales growth and its strategic focus on domestic markets, which is expected to shield the company from potential impacts of US tariffs. Additionally, RHB has revised its earnings forecasts for Food Empire upwards for FY2025 to FY2026, citing better revenue traction, albeit with considerations for higher operating costs. This positive outlook appears to have resonated well with investors, driving the stock's notable intraday gain.