KUALA LUMPUR (Jan 11): CIMB Equities is maintaining its Sell rating on Top Glove Corp Bhd and target price of RM3.61, which is still based on a forward price-to-earnings of 13.05 times.
“Consensus numbers are still too high and valuations expensive. Hartalega is a better proxy for the glove sector,” it said on Wednesday.
CIMB Research said Top Glove’s 1Q12 briefing revealed that demand has not picked up despite a 40% slump in rubber latex price from last April’s peak.
The research house added this was due to overcapacity and cautious business sentiment in the EU and US. Also, hospitals and governments are better prepped for ‘flu outbreaks.
“Consensus numbers are still too high and valuations expensive. Hartalega is a better proxy for the glove sector,” it said on Wednesday.
CIMB Research said Top Glove’s 1Q12 briefing revealed that demand has not picked up despite a 40% slump in rubber latex price from last April’s peak.
The research house added this was due to overcapacity and cautious business sentiment in the EU and US. Also, hospitals and governments are better prepped for ‘flu outbreaks.
