MIDF Research has revised upwards Top Glove Corp Bhd's earnings forecast for financial year 2012 by 9.8 per cent to RM159.6 million from RM145.3 million.
MIDF Research said the adjustments were basically to reflect lower assumption on average latex price, higher utilisation rate and stronger greenback against the ringgit.
"Despite softening in latex price and strengthening of dollar, we believe that demand for gloves plays a major role in sustaining good performance for the glove players including Top Glove," it said today.
Meanwhile, HwangDBS Vickers Research expects Top Glove to record better earnings in the second quarter onwards after the company posted a within-expectation performance in the first quarter of RM31.4 million, accounting for 21.6 per cent and 20.2 per cent of the research house and consensus full year estimates respectively.
"Key to our forecast is higher cost savings passed to ustomers," it said.
Therefore, HwangDBS Vickers maintains a "hold" call on Top Glove with a target price of RM4.05 while MIDF Research maintained its "sell" recommendation on a higher target price of RM3.61 from RM3.29. -- Bernama
MIDF Research said the adjustments were basically to reflect lower assumption on average latex price, higher utilisation rate and stronger greenback against the ringgit.
"Despite softening in latex price and strengthening of dollar, we believe that demand for gloves plays a major role in sustaining good performance for the glove players including Top Glove," it said today.
Meanwhile, HwangDBS Vickers Research expects Top Glove to record better earnings in the second quarter onwards after the company posted a within-expectation performance in the first quarter of RM31.4 million, accounting for 21.6 per cent and 20.2 per cent of the research house and consensus full year estimates respectively.
"Key to our forecast is higher cost savings passed to ustomers," it said.
Therefore, HwangDBS Vickers maintains a "hold" call on Top Glove with a target price of RM4.05 while MIDF Research maintained its "sell" recommendation on a higher target price of RM3.61 from RM3.29. -- Bernama
