KUALA LUMPUR (March 21): CIMB IB Research has downgraded Pharmaniaga Bhd to “Hold” to RM2.35 with a lower target price (TP) of RM2.70 (from RM3.30) and said it was slightly negative about the group’s position in the short term as interest expense may stay high unless it is able to cut receivables.

In a note March 20, the research house however said its long-term outlook remains positive as it grows its manufacturing segment.

“The group remains optimistic that its concession will be renewed.

“Downgrade to Hold with a lower TP of RM2.70, based on 11.5x CY20F P/E.

“A positive outcome from concession agreement negotiation and ramp-up in its manufacturing segment will be key re-rating catalysts,” it said.