KUALA LUMPUR (May 14): Hong Leong IB Research said it remains positive on Inari Amertron Bhd as its new factory P13 was on track and expected to contribute strongly from 4QFY15 and beyond, with potential upward revisions to house FY16/17 forecasts and target price.
In a trading idea today, the research house said Inari was poised to rewrite all time high after building a strong base near RM3.14 or 23.6% FR.
“A decisive breakout above RM3.43 will spur prices higher to retest RM3.52 and our long term target price of RM3.71 (150% FR).
“Immediate supports are located at RM3.23 (23.6% FR and 10-d SMA) and RM3.14. Cut loss below RM3.10.
“A better trading exposure is through Inari-WB (Expiry: 17 Feb 2020; Premium: 3.3%; gearing: 2.33; 1-month average volume: 328k) compared with Inari-WA (Expiry: 6 Apr 2018; Discount: 1.8%; gearing: 1.13; 1-month average volume: 28,000),”it said.