We cut our target price for PPC by 10% and downgrade from O-PF to M-PF. H1 2016’s recurring earnings declined 54.7% YoY, worse than we expected. However, the valuation looks reasonable following the recent fall in its share price. Although, the stock is trading at a TTM P/E of 17.5x based on reported EPS, it is only 5.6x recurring EPS excluding forex losses.