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Investing.com - Macquarie downgraded QL Resources Bhd (KLSE:QLG) from Outperform to Neutral on Wednesday, while lowering its price target to MYR4.25 from MYR5.00.
The rating change follows a group call hosted by Macquarie with QL Resources management to discuss the company’s recent second-quarter results and future outlook.
According to Macquarie, management expressed optimism about improved performance in the third quarter, though noted that fiscal year 2026 profit growth could face challenges due to ongoing headwinds in the company’s Convenience Value Store (CVS) and Palm Oil and Clean Energy (POCE) segments.
The downgrade reflects Macquarie’s concerns about increased competition within the CVS segment, which could pressure growth prospects for the Malaysian consumer goods company.
Weaker margins in the POCE segment were also cited as a factor weighing on the company’s outlook, contributing to Macquarie’s more cautious stance on the stock.
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