KUALA LUMPUR (Jan 9): Affin Hwang Capital Research has upgraded Supermax Corp Bhd to “Buy” at RM2.08 with a higher target price (TP) of RM3.10 (from RM2.10) and said the stock was currently trading at an undemanding 11.8x FY18E EPS (60% discount relative to peers).

In a note today, the research house said Supermax, like its peers, should continue to benefit from the ongoing glove shortage, despite the legal issue surrounding its founder.

“Delivery of earnings growth in FY18 will likely be the key re-rating catalyst.

“We raise the 12-month TP to RM3.10 based on a 17.8x CY18E PER,” it said.