Petra's 1Q09 net profit of US$4.3m (+49% yoy) was in line with our expectations, forming 20% of our full-year estimate and 23% of consensus. The improvement was led by higher ASPs for CI non-Europe operations, growth in the branded consumer division, and the end of hedge charges for the CI segment. We are maintaining our FY09-11 EPS forecasts. Taking into account receding risk aversion in the market and peer valuations, our target price has been raised to S$0.58, based on 8x CY10 P/E (from S$0.40, 6x CY10P/E). However, downgrade to Underperform from Neutral due to downside potential to our target price.