KUALA LUMPUR (Nov 26): CGS-CIMB Research has maintained its “Add” rating on Power Root Bhd at RM2.34 with a higher target price (TP) of RM2.70 (from RM2.30) and said Power Root’s 1HFY20 core net profit of RM25.3 million came in above house and consensus expectations at 58% of its previous FY20F forecasts.

In a note Nov 25, the research house said stronger-than-expected sales and EBITDA margins as well as a lower-thanexpected effective tax rate are key reasons for the earnings beat.

“Maintain Add with a higher TP of RM2.70 as we lift our earnings forecasts and roll over our valuation base year to CY21F from CY20F,” it said.