KUALA LUMPUR (March 6): Mercury Securities maintained its “buy” rating for Pentamaster Corp Bhd at RM4.20, with a target price (TP) of RM5.53, based on earnings per share of 16.7 sen forecast for the financial year ending Dec 31, 2024, and a price-earnings ratio of 33 times.

In a note on Wednesday, the research house said it likes the stock for the company's attractive plans to expand into the medical segment.

Mercury said Pentamaster is well positioned to benefit from the growing medical devices industry in Malaysia, which Statista forecast will grow at a four-year compound annual growth rate of 7.8% from 2024 to 2028.

“The TP represents a potential return of 31.6% over the current price.

“Pentamaster is strategically poised to capitalise on opportunities within the medical industry by utilising its factory automation solutions segment, in response to increasing global manufacturing demand for higher precision automation and improved productivity and quality standards,” it said.

Furthermore, the research house said the company's presence in Germany will also facilitate its expansion into the medical technology sector, particularly targeting countries such as the UK and Ireland.