Shares of Pharmaniaga Bhd jumped back by 58 sen or 10.1% to RM6.32 in this morning's trading session after experiencing a price correction yesterday.
At 10.14am, the counter hit RM5.98, up 24 sen or 4.18%.
The counter was the fifth most profitable counter during this morning's trading session, seeing 4.83 million shares traded.
According to Hong Leong Investment Bank Research analyst Gan Huan Wen, he downgraded Pharmaniaga's recommendation to 'hold' from 'buy' after the company's share price had reached fair value.
"We maintain the target price (TP) of RM5.52 at 21.5 times the price to earnings (P/E) for the financial year ended December 31, 2022 (FY22) unchanged," he said.
Although Pharmaniaga received a request to provide 7 million doses of Sinovac vaccine to government agencies and state governments, analysts opined that the announcement was not surprising as Pharmaniaga has an additional supply of Sinovac vaccine.
According to Huan Wen, Pharmaniaga has 24 million doses of Sinovac vaccine to distribute with only 12 million to be given to the Ministry of Health.
"Since this announcement is not surprising, our projections remain unchanged," he explained.
