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LSK and CUCKOO mattress collaboration

(LSK) seems to have come to life in recent weeks. Since late October, the stock has added 27 sen or almost 50% to its stock price. On Thursday, CIMB Research upped its target price for the stock to RM1.60, indicating a significant 95% upside from its current price. The research house said that LSK was driven by the defensive nature of its business, attractive valuation of 10.5 times price-earnings (PE) multiple for 2021, a net cash position of RM13.8mil and appealling dividend yields of 3.3% to 7.4%. A good insight into changes going on at LSK came from its announcement this week of a collaboration with CUCKOO International (MAL) Sdn Bhd.

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