CTOS Digital attracts unanimous analyst upgrades as RHB Investment Bank Bhd (RHB Research), CIMB Investment Bank Bhd (CIMB Securities) and Hong Leong Investment Bank Bhd (HLIB) reaffirm BUY calls, with target prices ranging from RM0.89 to RM1.20 and upside potential of up to 69%.
Analysts highlight a sustainable growth recovery, stronger earnings trajectory and improving operational efficiency driven by artificial intelligence adoption and regulatory tailwinds.
The research houses noted that CTOS Digital’s 1Q26 performance met expectations, with core net profit rising between 24% and 49% year-on-year across estimates, driven by revenue growth of 7.3% to RM81.6 million and stronger associate contributions.
RHB Research said the results were in line and supported by expanding key accounts, international growth and direct-to-consumer demand, while CIMB highlighted improved margins and lower finance costs as borrowings declined.
Momentum is expected to strengthen in the second half of 2026 as analysts point to higher adoption of digital and analytics solutions, new product rollouts and artificial intelligence-driven efficiency gains.
RHB Research said CTOS is positioning itself as a trusted intelligence provider while CIMB Securities added that operating leverage and infrastructure modernisation should support a return to positive earnings growth.
HLIB noted that regulatory changes under the Consumer Credit Act 2025 are expected to expand CTOS’ data pool and monetisation opportunities, particularly in underserved credit segments.
Across the board, analysts said valuation remains undemanding with CTOS trading below historical averages, although risks include slower adoption, execution delays and regulatory shifts.
As of 10.08 am, the stock price increased 4.23% to RM0.74.
