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Brokers' ' take: RHB upgrades Riverstone to '' neutral ', calls existing evaluation reasonable

RHB on Thursday (Feb 24) updated Riverstone to “neutral” from “market” and also elevated its target rate to S$ 0.74 from S$ 0.65, while keeping in mind that the handwear cover manufacturer’s existing evaluation is reasonable.

Riverstone is trading at 16 times the brokerage firm’s price quotes for FY2023 profits, according to its historic standard and also pre-pandemic 5-year mean, RHB claimed in a study note.

RHB’s brand-new target rate indicates a prospective disadvantage of 6.3 percent from the handwear cover manufacturer’s trading rate of S$ 0.79 as at 11.51 get on Thursday. Its shares were down 4.2 percent or S$ 0.035 at the time.

On The Other Hand, DBS Team Research study has actually decreased its target rate on the counter to S$ 0.97 from S$ 1.20, after reducing its FY2022 and also FY2023 profits anticipated by 31 percent and also 16 percent specifically. DBS’s brand-new target rate indicates a prospective advantage of 22.8 percent.

The DBS research study group decreased its target rate to represent the hold-up in Riverstone’s ability development strategies, in addition to assumptions for reduced typical asking price (ASPs) for the team’s health care handwear cover sector.

Both RHB and also DBS anticipate the ASPs for Riverstone’s health care handwear cover sector to see a high decrease, however its direct exposure to the cleanroom sector need to support component of the influence.

” That claimed, we still anticipate weak quarters in advance, as the health care department still incorporates most of manufacturing quantities,” claimed RHB.

The ASP for health care handwear covers reduced even more to US$ 25-30 in Q1 2022 from US$ 37-38 per 1,000 items in Q4 2021.

DBS is forecasting health care handwear cover ASPs to secure at around the US$ 25 degree and also has actually decreased its ASP forecast for FY2022 to US$ 24 per 1,000 items from US$ 32 formerly. For FY2023F, the research study group is forecasting a somewhat reduced ASP of US$ 22 amidst greater ability.

On the other hand, DBS anticipates need for cleanroom handwear covers to stay solid on the back of eager need from the innovation, pharmaceutical and also production markets. It forecasts costs to stay strong at somewhat over the US$ 100 degree.

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