PhillipCapital has upgraded Micro Mechanics Holdings (MMH) to “buy” from “hold” after a strong 4Q20 profits showing by the company. The brokerage has also raised its target price on the counter to $2.50 from $1.60 previously.

PhillipCapital’s head of research Paul Chew said the company’s 4Q20 profits came “in line with expectations”, with the company recording a 48% jump in profit after tax and minority interests (PATMI) to $3.9 million. 

Furthermore, Chew noted that gross margins have recovered to their highest levels in seven quarters and believes higher prices was a reason for the improvement.

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