=MARKET BUZZ: Brokerages Cut Malaysia's Top Glove Rating On Weak 3Q, Fair Valuation
KUALA LUMPUR (Jun 19) -- Brokerages downgrade Top Glove Corporation's rating after company posts weaker-than-expected 3Q earnings, and fair valuation after 22% share price rally since early-May. "While we expect a stronger set of earnings in the upcoming 4QFY17, we believe current valuations are already fair and have largely reflected most of the positive near-term sector catalysts," says UOB Kay Hian Securities in investor note; cuts rating to Hold, lowers target price to MYR5.48 from MYR5.89. Nevertheless, recent softening of latex prices should see margins normalise upwards in upcoming quarter, adds house. CIMB Investment Bank also downgrades Top Glove to Hold from Add, but raises target price to MYR5.75 from MYR5.65. Shares now down 2% at MYR5.50.
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