0401 GMT - Riverstone Holdings' healthcare gloves segment faces headwinds as additional supply begins to come online, UOB Kay Hian analysts say in a research report as they lower the stock's target price to S$0.67 from S$0.80 with an unchanged hold rating. Average selling prices, or ASPs, of healthcare gloves fell roughly 10% on quarter in 2Q to around $28/1,000 pieces as demand normalized, and management said 3Q ASPs are likely to drop to prepandemic levels at $25/1,000 pieces, the analysts note. Together with weakening demand, more supply from China is expected to come on line in 3Q-4Q, creating downward pressure on ASPs, the analysts say. Shares are 0.7% higher at S$0.71. (ronnie.harui@wsj.com)
$(END)$ Dow Jones Newswires
August 19, 2022 00:03 ET (04:03 GMT)
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