0517 GMT - Top Glove's earnings outlook is expected to remain neutral, with its risk-reward profile looking balanced to Citi analyst Megat Fais. Top Glove has strong capacity to absorb additional demand but faces potential risks from increased competition in non-U.S. markets, the analyst says in a note. The bank notes that the wider Malaysian glove sector faces a positive outlook due to improving demand-supply dynamics and could gain from additional tariffs on Chinese gloves. Citi cuts its FY 2025-FY 2027 EPS forecasts for the glove maker by 11%, 8%, and 2%, respectively, citing recent trends. Citi raises Top Glove's target price to MYR1.23 from MYR1.07 as it rolls forward valuations to end-FY 2026, while maintaining a neutral rating on the stock. Shares are 1.6% lower at MYR1.20. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
February 13, 2025 00:17 ET (05:17 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.