KUALA LUMPUR (Aug 2): CIMB IB Research has maintained its “Reduce” rating on Wellcall Holdings Bhd at RM1.24 with a higher target price of RM1.10 (from RM1.05) and said rising raw material costs has been the company’s major concern over the past few quarters.

In a note Aug 1, the research house said Wellcall raised selling prices in 3QFY9/18 but was only able to pass on the higher raw material costs to some of its customers.

“We raise our FY18-20F EPS forecasts by 2.0-6.4% to reflect higher selling prices. We also raise our target price but the stock is not cheap at 17.1x 2019 P/E, remains a Reduce,” it said.