InvestIdeas

not vested

Regulatory risks appear contained; U/G to BUY

We come away from CTOS’ analyst briefing ystd feeling positive that its business continuity is not at risk following the KL High Court decision on 11 March to rule in favour of the plaintiff.

Despite share price undergoing a steep 14% correction ystd, we believe regulatory risks to its business at this juncture are contained.

As such, we upgrade CTOS to a BUY.

We maintain our FY24-26E forecasts and TP of MYR2.10 (pegged to 1.9x PEG).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/370558.pdf

CTOS Digital (CTOS MK)
Hysteria Over Litigations Unwarranted

Following the recent unfavourable ruling in a legal dispute, CTOS’ share price plunged as much as 27% on concerns that the group may no longer be able to formulate credit scores.

Nevertheless, management reassured investors that this will not impede the group’s daily operations, and they have solid grounds to win an appeal against the High Court’s ruling.

Upgrade to BUY following the recent share price action, with an unchanged target price of RM1.52.

Source: UOBKH

https://research.uobkayhian.com/content ... 3a9fa844e7