Maybank Investment Bank Research said Top Glove Corp Bhd’s third quarter financial results ended May 31 was “exceptionally weak” and below expectations on a convergence of negative factors.
The research house said it had lowered its “already street-low FY8/16-18 earnings per share forecasts further by 5% per annum on lower average selling price assumptions.
“Our new target price is RM4.35 (-5%; unchanged 15x 2017 PER–mean valuations) and the stock is now a sell. As we expect Top Glove’s earnings to normalise ahead, we see downside risk to street’s earnings projections and hence, pressure on Top Glove’s share price,” Maybank said.
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The research house said it had lowered its “already street-low FY8/16-18 earnings per share forecasts further by 5% per annum on lower average selling price assumptions.
“Our new target price is RM4.35 (-5%; unchanged 15x 2017 PER–mean valuations) and the stock is now a sell. As we expect Top Glove’s earnings to normalise ahead, we see downside risk to street’s earnings projections and hence, pressure on Top Glove’s share price,” Maybank said.
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