KUALA LUMPUR (Feb 21): Pecca Group Bhd shares jumped 6.15% this morning following an upgrade and positive outlook for the stock.
At 11.41am today, Pecca rose 8 sen to RM1.38 with 385,400 shares done.
Yesterday, Affin Hwang Capital Research upgraded Pecca to "buy" at RM1.31 with a higher target price of RM1.52 (from RM1.35), and said strong demand for the refreshed Perodua Myvi and new model line-ups from Toyota will likely spur demand for leather seats.
The research said that as Pecca is the largest automotive leather upholstery player in Malaysia, its revenue is projected to grow at a CAGR of 6.4% for FY17-20E as more mainstream cars are featuring leather content in entry-level segment cars.
"Potential re-rating catalysts include penetration into leather upholstery for commercial aviation and the Thailand export market," it said.