24 April 2012

Maybank Research upgrades TopGlove target price to RM 5.40 (Buy) on stronger sales outlook and seasonal downtrend latex costs

(TOPGLOV opening stock price today (24.4.2012) was RM 4.43)

Maybank IB Research upgraded Malaysia’s Top Glove Corp Bhd to "buy" from "sell" as sales outlook of the world’s largest rubber glove maker turns stronger.

“We have turned positive on Top Glove — its sales has picked up further and is almost back to its H1N1 peak; and latex cost (key input) has begun its seasonal downtrend,” said the broker in a research note on Tuesday.

The research house also raised Top Glove’s target price to RM5.40 per share from RM4.20 previously.

“Our new target price-to-earnings ratio of 16 times pegs the stock back to its mean valuations as we believe sentiment towards the stock has turned positive on long-term global rubber supply surplus outlook,” it added.

By 9.43am Malaysian time, Top Glove’s shares fell 0.42 percent, underperforming the Malaysian benchmark stock index that dropped 0.05 percent. -- Reuters

Source: www.btimes.com.my

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