shares of malaysian glove maker hartalega holdings bhd are trading lower after analysts cut earnings forecasts and target prices in the wake of a steep drop in quarterly earnings shares fell as much as 61 to myr263 early wednesday bringing yeartodate losses to 54 the drop comes after hartalega on tuesday reported a 96 onyear drop in net profit in the quarter ended june with revenue slumping 78 amid weaker global demand for protective wear along with higher labor and energy costs cgscimb analyst walter aw said that due to the current weak operating environment in the glove sector he expects hartalega to post sequentially lower earnings in the next three quarters current valuations have yet to account for the weakerthanexpected earnings prospects ahead he said noting that the stock recently traded with a pricetoearnings ratio at a more than 63 premium to the overall sectors ratio the brokerage downgraded hartalega to a reduce rating from hold slashing its target price to myr230 from myr470 the meteoric demand during the covid19 pandemic has fizzled down said malacca securities analyst kenneth leong he also highlighted concerns over volatility in raw material prices shipping constraints electricity cost labor shortages and the threat of competition from local and overseas players moving forward we were guided that the stiff competition that resulted in the oversupply condition and inventories from previous stockpiling activities have yet to taper he said thus we expect this would continue to depress average selling prices and we expect prices to remain soft throughout fiscal year 2023 malacca cut its target price to myr261 from myr469 while keeping its hold rating maybank investment bank analyst wong wei sum described hartalegas outlook as gloomy with management turning more bearish on average selling prices and putting some plans for expansion on hold the bank lowered its earnings forecasts for fiscal years 20232025 by 39 49 and 16 respectively while cutting its target price to myr186 from myr248 it maintained its sell call