KUALA LUMPUR (Sept 24): Shares in Power Root Bhd rose 3.21% this morning after CIMB IB Research initiated coverage on the stock at RM1.56 with an “Add” rating and target buy of RM2.07 and said the company is one of Malaysia’s largest coffee manufacturers, commanding a 14.5% share of the Malaysian coffee market as at Sep 2017 (source: Nielsen).

At 9.20am, Power Root rose 5 sen to RM1.61 with 226,500 shares done.

In a note Sept 21, the research house said the company is set to capitalise on the growth of its export markets and to benefit from improved consumer sentiment on the domestic front.

“It is also focusing more on its profitability as it scales back A&P spending and reinvests profits from commercial investments over the past few years.

“We initiate coverage with an Add recommendation and end-2019F target price of RM2.07, based on 19x CY19F P/E,” it said.