Riverstone Holdings (RS)

RHB Securities is initiating coverage on Riverstone Holdings with a ‘buy’ call and target price of $5.45.

Riverstone is a key company to lookout for

CGS-CIMB Ong is reiterating his “buy” or “add” call on Riverstone Holdings at a revised target price of $5.55.

Looking ahead, DBS Research Group analyst Lee Keng Ling expects earnings for 2H2020 to be “even stronger”, as the company benefits fully from the higher ASPs and margins.

“The glove companies’ earnings will be further boosted by expanded margins as raw material prices remain low, selling prices continue to grow, USD continues to strengthen over the RM and expansion plans remain intact for the glove producers,” AmBank says.

Scoop up Top Glove, Riverstone and UG Healthcare - analysts say.

“We continue to like Riverstone for its attractive valuations (33% discount to Malaysia-listed glove sector average CY21F P/E of 24.7x),” says CGS-CIMB analyst Ong Khang Chuen

Riverstone “continues to be a laggard play in the glove sector, as it is trading at a 49% discount to its Malaysia-listed peers,” says CGS-CIMB analyst Ong Khang Chuen.

Earnings of Malaysia-based glove and face mask manufacturer Riverstone Holdings soared 54.3% to RM46.6 million ($15.2 million) in 1Q20, from RM30.2 million a year ago, reinforcing that protective health gear are now the hottest investment property.

The SGX-listed glove trio now has a combined market value of more than $6 billion, giving them an average total return of 29.9%.