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Investing.com - UBS downgraded Top Glove Corp Bhd (TOPG:MK) from Buy to Neutral while reducing its price target to NOK0.75 from NOK1.40.
The downgrade follows Top Glove’s Q4 FY25 results, which showed strong sequential growth in volume, margin, and earnings. The company reported quarterly volume growth of approximately 11.7 billion pieces of gloves.
North America emerged as a key growth driver, with sales volume increasing 60% quarter-over-quarter, offsetting declines of 19% in Western Europe and 12% in Eastern Europe during the same period.
EBITDA margins improved to 13.4% in Q4 FY25 from 11.4% in Q3 FY25, placing Top Glove just 2-3 percentage points below its pre-COVID margin levels.
According to UBS, Top Glove’s management expects utilization rates to increase further, with volumes and margins projected to reach pre-COVID levels in FY26 and FY27, respectively.
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