Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 13): CCK Consolidated Holdings Bhd rose 4.63% at mid-morning today after PublicInvest Research initiated coverage on the stock.

At 10.15am, CCK rose 2.5 sen to 56.5 sen with 2.75 million shares traded.

PublicInvest Research initiated coverage on CCK today with an "outperform" rating at 54 sen and target price of 88 sen, and said it sees strong recovery in the company's prospects after having suffered from a double whammy in recent times due to a steep decline in egg prices and an increase in feedstock cost due to unfavourable foreign exchange movements and higher corn and soymeal prices.

In a note today, the research house said it liked the company for being an integrated poultry player, its sole focus on East Malaysia, its continuous expansion in Malaysia and Indonesia's retail segments, and favourable raw material and poultry price movements.

"We initiate on CCK Consolidated (CCK) with an Outperform call and target price of 88 sen based on 14X FY20 PER.

"We think that current valuations are unjustifiable given the positive industry sentiment," it said.

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