Goodpack - Goodpack upgraded to Outperform by CIMB, raises target

Stock Name: Goodpack
Company Name: GOODPACK LIMITED
Research House: CIMB

CIMB upgrades Goodpack (G05.SG) to Outperform from Neutral, raises target price to $2.05 from $1.94, based on 19x FY11 P/E, after increasing FY11-12 earnings estimates by 5%-6% to reflect higher asset utilisation and lower logistics handling cost assumptions, says Dow Jones.



CIMB says plans by supplier of intermediate bulk containers to meet 20%-30% of its ground-trucking needs internally by FY12 expected to lower logistics costs by 3%-5%.



Research house notes Goodpack intends to deepen its presence in natural rubber market, targeting 3%-4% annual growth in market share. Shares flat at $1.86.