Kenanga raises Supermax to 'outperform'
Kenanga Research upgraded its rating on Supermax Corp Bhd to 'outperform' from 'market perform', seeing value in the shares of the world’s second largest rubber glove maker.
"At the current market price, the stock offers a total return of 18.2 per cent," the research house said in a note on Thursday.
Kenanga maintained its target price of RM2.20 on Supermax shares.
"The share price is down 14 per cent from its high of RM2.06 per share in January 2013 compared to its peers of being only down by 2 per cent, despite the results coming in within ours and the market expectations," it added.
As of 10.29am, shares of the company were down 0.52 per cent at RM1.91, underperforming the benchmark stock index’s 0.09 per cent rise.
Meanwhile, RHB Research downgraded the Malaysian telecommunications sector to 'neutral' from 'overweight' saying earnings for the fourth quarter ended December 31 were subdued due to costs and taxation.
"The sector should see fairly sustained revenue growth this year although margins may come under pressure from handset subsidies in view of intense competition," said RHB in a report on Thursday.
The brokerage has a 'buy' call on TIME dotCom Bhd, and a 'neutral' rating on Axiata Group Bhd, DiGi.Com Bhd, Maxis Bhd and Telekom Malaysia Bhd.
RHB said it expects the sector’s dividends to stay intact, while benefits from the 4G or long-term evolution technology will require time to materialise.-- Reuters