KUALA LUMPUR (June 5): Kenanga Research has downgraded Press Metal Aluminium Holdings Bhd at RM4.30 with a higher target price of RM4.45 (from RM3.75) and said Press Metal’s 1QFY20 core profit of RM105.9 million came in weak but matched expectation.

In a note today, the research house said with aluminium prices hitting new lows, the upcoming 2QFY20 would be even weaker.

“However, aluminium prices should have bottomed out, and coupled with economic activities resumption, we should see a seasonally strong 2H.

“Nonetheless, we believe its recent strong share price performance has already priced in nearterm positives. Thus, we cut the stock to Market Perform with revised target price of RM4.45,” it said.