KUALA LUMPUR (Feb 27): QL Resources Bhd (KL:QL) presents a fresh appeal to investors following a recent decline in its share price, which has prompted CIMB Securities to upgrade the stock to ‘buy’ from ‘hold’.

The brokerage believes the market has more than priced in the company’s near-term earnings softness, despite the group posting weaker results for the first nine months of its fiscal year.

This valuation gap, driven by the share price weakness, has created an attractive entry point for investors, in CIMB’s view. The upgrade signals confidence that the stock’s current level compensates for any short-term financial headwinds.

“We also think valuation — at 31.7 times 1-year forward P/E (price-earnings) — is unjustified…