KUALA LUMPUR (Sept 25): Affin Hwang Capital Research has upgraded Pecca Group Bhd to “Hold” at RM1.11 with an unchanged target price of RM1.10 and said although Pecca’s share price has corrected by 13% since it announced disappointing 4QFY19 results, its revenue base looks modest, and a dip in margins and EPS will likely limit any bullish sentiment towards Pecca in the near term.

In a note today, the research house said at 13x FY20E PER, Pecca now trades close to the stock’s average 2-year forward PER, which looks to be fair, reflecting Pecca’s softer earnings projections.