KUALA LUMPUR (May 26): Cloudpoint Technology Bhd (KL:CLOUDPT) fell to its lowest in more than a month after an unexpectedly weak first quarter at the information technology company.

Net income for the first three months made up less than 8% of the full-year forecasts, prompting two of the three research houses to downgrade the stock. Public Investment Bank lowered the stock to ‘neutral’ and nearly halved its target price to 50 sen based on a lower earnings multiple.

“The lower multiple is justified given the challenging near-term outlook,” Public Investment flagged.

Shares of Cloudpoint fell as much as seven sen or 13% to 46 sen, its lowest since April 14. The stock was trading at 46.5 sen at 12pm after more than 10 million shares changed hands. The company’s market capitalisation was RM247 million based on the last price.

Cloudpoint has lost nearly one-third of its market value since the year began as earnings at the company providing enterprise and data centre networking as well as cybersecurity services continued to underperform market expectations.

The average 12-month target price has fallen to 54 sen, according to Bloomberg. RHB Research also lowered its recommendation to ‘neutral’ and slashed its target price to 48 sen.

For CIMB Securities, the only research house keeping its ‘buy’ post-results, Cloudpoint would begin to see stronger results from the second quarter onwards on higher project billings and contract wins as well as income from the proposed acquisition of CX One Sdn Bhd starting from the third quarter.

“We expect Cloudpoint to deliver stronger results from 2QFY2026 onwards, underpinned by accelerated project rollouts across its business segments, particularly enterprise and data centre networking,” the research house said.