Kenanga Research raised its target price on MBM Resources Bhd to 6.57 ringgit ($2.17) per share from 5.38 ringgit previously, citing stronger earnings outlook ahead for the Malaysian auto parts maker on the back of its expansion plans.
"We believe in the potential for MBM to grow into a significant auto parts player that would complement its existing manufacturing division," the broker said in a research note on Friday.
Maintaining an outperform call on couter, Kenanga said MBM offered operational cost efficiency that benefits the entire group in cost savings.
As of 0211 GMT, MBM shares rose 1.77 percent against the Malaysian benchmark stock index that inched up 0.35 percent.
1012 (0212 GMT)
(Reporting by Anuradha Raghu in Kuala Lumpur; email@example.com)