KUALA LUMPUR (March 1): Inter-Pacific Research Sdn Bhd has downgraded Cocoaland Holdings Bhd to “Hold” at RM2.11 with a lower target price of RM2.21 based on our forecasted FY19 EPS of 13.8 sen pegged to 16x PER.

In a note Feb 28, the research house said downside risks include the implementation of the 40sen/litre tax on sugary drink manufacturing starting April 1, and raw material price volatility.

“We still like Cocoaland for its 1) defensive position as a consumer stock against the uncertain economic outlook 2) zero debt position 3) good dividend track record,” it said.