RHB Research maintains Buy on Karex, higher TP

KUALA LUMPUR: RHB Research has maintained its Buy rating on Karex with a higher target price of RM4.43 from RM3.51 based on an existing 20 times P/E on FY15 earnings, which is in line with its target valuation for Hartalega.

“We continue to like Karex’s leadership in the condom manufacturing industry, strong earnings growth spurred by capacity expansion, and stable operating environment amid stabilising raw material prices and the appreciation of the USD against the ringgit,” it said on Friday.