Frontken rises 3.8% on favourable outlook

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KUALA LUMPUR (July 19): Shares in Frontken Corp Bhd rose 3.8% this morning after Hong Leong IB (HLIB) Research picked the counter as its top pick in the technology sector.

At 11.22am, Frontken shares were up 6 sen at RM1.64 for a market capitalisation of RM1.73 billion.

HLIB Research has a "buy" rating on Frontken with a target price of RM1.67 pegged to 25x of FY20 earnings per share (EPS).

"We expect multi-year growth ahead on the back of sustainable global semiconductor market outlook, robust fab investment, leading edge technology, O&G (oil and gas) recovery, and strong balance sheet," it said in a sector outlook report today.