After the price surge, AmInvest Research lowers glove sector to neutral

AmInvestment Research is downgrading its call on the glove sector to neutral from overweight as at the current share price levels, the valuations for glove companies under its coverage – Top Glove, Kossan and Hartalega -- have fully priced in the companies’ earnings outlook.

KUALA LUMPUR: AmInvestment Research is downgrading its call on the glove sector to neutral from overweight as at the current share price levels, the valuations for glove companies under its coverage – Top Glove, Kossan and Hartalega -- have fully priced in the companies’ earnings outlook.

“We think that the average selling prices (ASP) will begin to taper off in 1Q2021 after the expected increase in ASP until end-2020, which have been priced in. Share prices of all of the glove companies in our coverage have exceeded their target prices, ” it said in a research note on Tuesday.