KUALA LUMPUR (Oct 18): Affin Hwang Capital Research has upgraded Press Metal Aluminium Holdings Bhd to “Buy” at RM4.85 with a higher target price of RM5.35 (from RM4.80) and said Press Metal is prepped for a 2-year core EPS CAGR of 38% in FY20-21E.

In a note today, the research house said this growth will come from the new aluminium production capacity commencing in October 2020, maiden earnings contribution from its investment in PT Bintan Alumina and a weak ringgit.

“The resumption of alumina supply and hence lower production cost provides a near-term catalyst.

“We raise our target price to RM5.35 based on a higher 2020E PER target of 33x and upgrade our call to Buy from Hold,”it said.