KUALA LUMPUR (May 12): AllianceDBS Research has maintained its “Hold” rating on Sasbadi Holdings Bhd with an unchanged target price of RM2.25 and said it favours the stock for its solid fundamentals and hands-on management.

In its evening edition yesterday, the research house said the stock was fairly valued at present Sasbadi had on May 11 recorded an all-time high of RM2.57 before closing at RM2.54 (up 4 sen or 1.60%).

The research house said Sasbadi continued to trade above the 20-day and 50-day moving average lines.

AllianceDBS Research said that following the up close on May 11, the stock was expected to test higher level again with immediate hurdle seen at RM2.60.

“A crossover of RM2.60 should see further price rise to the next overhead resistance at RM2.80.

“The support is at RM2.36. A fall below RM2.36 would put pressure on the stock down to the subsequent support at RM2.21,” it said.

The research house said stock volume traded on May 11 was 1.44 million shares compared to the 3-month average volume of 780,000 shares.

The research house said that indicator wise, the MACD was above the 9-day moving average line.