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Press Metal Aluminium Holdings Bhd may see further upside despite a strong rally in its share price, according to RHB Research.
{alcircleadd}The research firm expects the company’s earnings to reach record highs in 2026 and 2027, supported by firm aluminium prices and a continued gap between supply and demand. It has raised its target price for the stock to RM10.50 (USD 2.65), the highest among major brokerages, while maintaining a “buy” rating.
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Shares of Press Metal have risen about 24 per cent so far this year, driven by global supply concerns and geopolitical tensions in the Middle East. Disruptions, including constraints around the Strait of Hormuz, have tightened alumina supply (about 20 per cent) and supported higher metal prices.
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Aluminium is currently trading in the range of USD 3,500–3,600 per tonne, up from around USD 3,100–3,200 before the recent escalation in tensions. Prices are now above levels seen during the 2022 Ukraine conflict.
RHB Research expects elevated prices to continue in the near term, which could support stronger profitability. The firm estimates that Press Metal could report nearly RM 3 billion (USD 756.6 million) in net profit this year, representing a significant increase from 2025.
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The brokerage also suggested that aluminium prices may stabilise above USD 3,000 per tonne over the longer term, which could lead to a revaluation of the company’s stock.
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