0118 GMT - Top Glove's shares now offer a more balanced risk-reward profile following a recent correction and an improving sales outlook, Hong Leong IB analyst Chee Kok Siang says in a note. The glove maker targets monthly sales of about 12.9 billion units in 1Q FY 2026, up 10% on quarter, with average selling prices expected to be stable, he says. Raw material costs for natural and nitrile rubber should stabilize, while natural gas tariffs may decline about 4%, he says. Coming 1Q earnings could be stronger, supported by better operating leverage and lower costs, though uncertainty in the supply-demand balance heading into 2026 lingers, he adds. Hong Leong upgrades Top Glove to hold from sell and raises its target price to MYR0.67 from MYR0.60. Shares are 3.0% higher at MYR0.69. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
October 09, 2025 21:18 ET (01:18 GMT)
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