CGS-CIMB reiterates a 'buy' for Riverstone saying 'stars are aligned'

SINGAPORE (May 22): CGS-CIMB is reiterating its ‘add’ or ‘buy’ call on personal protective gear manufacturer Riverstone Holdings, but at a revised target price of $2.50. This is up 34% or 64 cents from its previous $1.86 call, analyst Ong Khang Chuen says in a May 21 note.

He explains this comes a Riverstone “continues to be a laggard play in the glove sector, as it is trading at a 49% discount to its Malaysia-listed peers”. The five-year average stands at 30%.

Other Malaysia-based healthcare gear manufacturers such as Hartalega, Supermax and Kossan have also reported strong 1Q20 earnings.