KUALA LUMPUR (Oct 17): Kenanga IB Research has maintained its “Outperform’ rating on Power Root Bhd at RM2.16 with a higher target price of RM2.45 (from RM2.30) and said it expects FY20 to see a greater harvest of its rationalisation efforts.

In a note today, the research house said this is driven by: (i) new SKUs to lift sales moving forward and (ii) on-going distribution streamlining and prudent A&P spending, coupled with (iii) more favourable locked-in coffee prices.

“Maintain “Outperform” with higher target price of RM2.45 (from previously RM2.30) following earnings upgrade,”it said.