Sea freight specialist KGW Group Berhad (MK: KGW) shows signs of rebound upon bouncing off the key support level (S1) of 26.5 sen and closed at 27.0 sen on 17 July 2024. We see this as a positive sign as KGW is still buoyant above the next support level (S2) of 25.5 sen, before challenging 28.0 sen (R1) again, and ultimately hitting the 30.0 sen (R2) target price.

Hong Leong Investment Bank pegged an upside target of 30.0 sen and 33.0 sen, which represent a significant upside from the current level.

We too, see a good trading BUY opportunity based on the current price level, as KGW is one of the lowest priced logistics players with exposure to the spiking sea freight rate to US routes.