KUALA LUMPUR (March 15) : MIDF Amanah Investment Bank Bhd has raised its target price for Top Glove Corp Bhd shares by 22% to RM4.39 from RM3.61 and upgraded the stock to a Neutral.
In a note on Thursday, MIDF said it expects Top Glove’s earnings to improve in the current financial year against a backdrop of lower natural rubber prices and a weaker ringgit versus the US dollar.
“We expect 1HFY12 earnings to be in line with our forecast. We do not expect any dividend payment to be declared during this quarter. Even with the downward trending latex prices and the strengthening of the US dollar, we do not foresee demand for glove products to increase significantly in the near future.
“This is due to the supply glut in the industry and glove buyers are mostly satisfied with their current inventory levels,” MIDF said.
Top Glove is expected to announce o its financial results for 2QFY12 on Thursday. The stock rose five sen to close at RM4.80 on Wednesday.
In a note on Thursday, MIDF said it expects Top Glove’s earnings to improve in the current financial year against a backdrop of lower natural rubber prices and a weaker ringgit versus the US dollar.
“We expect 1HFY12 earnings to be in line with our forecast. We do not expect any dividend payment to be declared during this quarter. Even with the downward trending latex prices and the strengthening of the US dollar, we do not foresee demand for glove products to increase significantly in the near future.
“This is due to the supply glut in the industry and glove buyers are mostly satisfied with their current inventory levels,” MIDF said.
Top Glove is expected to announce o its financial results for 2QFY12 on Thursday. The stock rose five sen to close at RM4.80 on Wednesday.
