KUALA LUMPUR (Aug 28): Shares in Power Root Bhd rose 1.02% this morning following a target price upgrade amid firmer 1Q earnings.
At 9.05am, Power Root aded 2 sen to RM1.98 for a market capitalisation of RM797.98 million.
CGS-CIMB Research maintained its “Add” rating on Power Root Bhd at RM1.96 with a higher target price of RM2.20 (from RM2.07) and said Power Root’s 1QFY3/20 core net profit of RM11.4 million (+18% y-o-y), came in ahead of house and consensus estimates, at 29% of house previous full-year forecast.
In a note Aug 27, the research house said this was aided by higher domestic sales, better-than-expected margin expansion, and a lower effective tax rate.
“Maintain Add with a higher target price of RM2.20 based on 19x CY20F P/E,” it said.