Top Glove Likely Supported by Price Hikes Amid Cost Pressures -- Market Talk

Dow Jones
03/24

0107 GMT - Top Glove's earnings outlook could remain supported by planned selling price hikes despite raw material headwinds, as the glove maker aims to fully pass through higher input costs and protect margins, CGS International analysts William Wo Chen Weng and Prem Jearajasingam say in a note. Tight nitrile butadiene rubber supply as well as rising nitrile and natural rubber prices may weigh on sales volumes, but flexible production could allow a shift toward natural rubber gloves. Margins are expected to improve in fiscal 2H, helping to offset 1H weakness, they note. The stock's current valuation looks undemanding, and it is well-positioned to navigate volatile market conditions, they add. CGSI maintains an add rating on Top Glove and keeps its target price at 0.67 ringgit. Shares are unchanged at 0.56 ringgit. (yingxian.wong@wsj.com)

 

(END) Dow Jones Newswires

March 23, 2026 21:07 ET (01:07 GMT)

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