Goodpack: Cimb upgrade from Neutral to Outperform; raises TP to $2.05 from $1.94, citing growth initiatives are gaining traction. The group intends to meet 20-30% of its ground needs internally by FY12, saving logistics costs. It also seeks to make further inroads in the natural rubber market, targeting 3-4% market-share growth annually. Goodpack is also aggressively pursuing the automotive industry by modifying to its bulk boxes to suit the larger dimensions of auto-parts tpt.
Stock catalysts could come from major auto-parts contract wins & effective penetration of new and existing markets. Stock is currently trading at 16.7x FY11 P/E. Share price is finding support at the 20-day MA at$1.86.
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