KUALA LUMPUR (Aug 19): AllianceDBS Research has downgraded Padini Holdings Bhd to “Hold’ with a lower target price of RM2.55 (from RM2.60).

In a note today, AllianceDBS vice president for equity Cheah King Yoong said he was taking a more cautious stance on the stock given that (1) the recent run-up of the stock is partially driven by a potential active capital management exercise, which we believe is still too early to speculate on at this juncture, and (2) we believe that Padini’s current valuation has priced in its near term growth prospects.

“As such, we view the stock to be fairly valued at this juncture,” he said.