Riverstone to continue benefitting from strong glove demand: analysts

Analysts from DBS Group Research, CGS-CIMB Research and RHB Group Research are upbeat on Riverstone Holdings after its 1QFY2021 ended March beat their expectations on the back of strong demand and higher average selling prices (ASPs).

DBS and RHB maintained their ‘buy’ calls with unchanged target prices of $1.86 and $1.85 respectively, while CGS-CIMB maintained its ‘add’ call with a lower target price of $1.80 from $2.30 previously.

The DBS team notes that the continued surge in ASPs, along with robust demand for both healthcare and cleanroom gloves, underpinned the 1022 % y-o-y spike in net profit to RM522.7 million ($168.6 million), despite higher production costs.