31.07.2020
Time for stock analysts to contemplate self-censorship by not ‘over-prospecting’
In these uncertain times when various unthinkable events have taken place, it can be a misdemeanour for key opinion leaders to raise false expectations that may lead to the downfall of people who follow these leaders’ viewpoints.
In tandem with the adage that the pen of stock analysts can be mightier than the sword, a recent company update on Top Glove Corporation Bhd had its analyst pondering if the world’s largest gloves manufacturer can ever breach the RM100 barrier.
While this eyebrow-raising contemplation – expressed vis-à-vis the headline “Can Top Glove break RM100?” – is thought provoking, it can be misconstrued as an endorsement of optimism given our stock market has gone berserk over “anything to do with gloves”.
In all fairness, it deserves a mention nevertheless that the analyst has furnished justification to his lofty valuation.
Having already raised the price target of Top Glove by 107% to RM46.40 (previously RM22.40) – which is probably the highest thus far if pitted against his other peers – the analyst envisages that the possibility of cracking RM100 can be realised on two counts:
