The latest Market Talks covering the Health Care sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0225 GMT - Top Glove's near-term challenges appear largely priced in following share price declines since early January, Hong Leong Investment Bank analyst Chee Kok Siang says in a note. The glove maker is expected to post weaker results in fiscal 3Q than 2Q as unfavorable foreign-exchange movements and rising nitrile butadiene rubber prices are likely to weigh on margins, he says. Chee cuts his estimates of Top Glove's FY 2026-FY 2028 earnings by 1.1%-6.9% to factor in higher nitrile butadiene rubber costs and a stronger ringgit. Hong Leong cuts its target price on Top Glove to 0.54 ringgit from 0.60 ringgit, while maintaining a hold rating on the stock. Shares are 1.7% lower at 0.56 ringgit. (yingxian.wong@wsj.com)
0129 GMT - Top Glove is expected to see its core net profit weaken on-quarter in fiscal 3Q, as average selling price hikes only take effect in April while higher input costs are felt earlier, CIMB Securities analyst Chun Sung Oong says in a note. He notes that the glove maker has begun issuing price increase notices to offset rising synthetic rubber costs and a weaker ringgit, with planned hikes of $7-$9 per 1,000 pieces. Some customers may temporarily switch to cheaper natural latex gloves, he adds. CIMB cuts Top Glove's target price to 0.63 ringgit from 0.68 ringgit, while maintaining a hold rating on the stock, as its current valuation has largely priced in a potential earnings recovery. Shares are 0.9% lower at 0.57 ringgit. (yingxian.wong@wsj.com)
0128 GMT - Top Glove could benefit from short-term disruptions in synthetic rubber markets caused by the Middle East conflict, Maybank IB analyst Wong Wei Sum says in a note. That is because it can produce both nitrile and natural rubber gloves, offering alternatives for price-sensitive customers, she says. Management is confident of passing on higher nitrile latex costs thanks to inelastic demand and low inventory levels, she notes. Recent gains in nitrile latex prices and supply disruptions may trigger mixed responses among clients, including panic buying, temporary order delays and switches to natural rubber gloves, she says. However, overall demand is expected to remain resilient, supported by tight inventory levels across the supply chain, she adds. Maybank maintains a hold rating on Top Glove and keeps its target price at 0.62 ringgit. Shares are 1.7% lower at 0.56 ringgit. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
March 19, 2026 04:20 ET (08:20 GMT)
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