KUALA LUMPUR: Spritzer Bhd surged to a fresh all-time high today, buoyed by stronger-than-expected second-quarter earnings that spurred analyst upgrades and boosted investor sentiment.
The stock climbed over 2 per cent, adding four sen to RM1.79 in early trade, before easing to RM1.76 at 9.30am. It later hovered around RM1.75, valuing the group at RM1.12 billion.
Year-to-date, the counter has gained about 15 per cent, supported by resilient earnings momentum.
The company’s net profit for the first half of the year has accounted for 57 per cent of consensus full-year estimates. This led to two of the four research firms covering the stock to raise their recommendations, leaving Spritzer with a unanimous “Buy” call.
Public Investment Bank Bhd (PublicInvest), which previously rated the counter “Outperform”, lifted its earnings forecast and target price, citing sustained bottled water demand supported by tourism recovery and rising health awareness among consumers.
The average target price has risen from RM1.79 to RM2.03 post-results, suggesting as much as a 15 per cent potential return over the next 12 months.
MBSB Research, which also upgraded its call, expects expansion into Singapore and stronger penetration of the hotel, restaurant and catering segment to bolster Spritzer’s market leadership.
The firm noted that a higher premium product mix and declining polyethylene terephthalate resin costs should provide margin relief, while automation and process optimisation continue to drive efficiency.
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