KUALA LUMPUR (Aug 19): AffinHwang Capital Research has upgraded Alliance Financial Group Bhd (AFG) to “buy” (from “hold”) at RM3.66 with an unchanged target price of RM4.50 and said although AFG’s 1QFY16 results were weaker as a result of normalisation in credit costs, its operating income has continued to hold up firmly, supported by stronger fund-based income growth while the NIM remains steady.

In a note today, the research house said near-term catalysts include AFG’s differentiating strategies in asset-liability management, track record as a banking solutions provider to the SMEs/ high-net-worth customers and while reaping results of rationalisation initiatives.

“Upgrade to 'buy' from 'hold', price target at RM4.50,” it said.