Karachi: Interloop Ltd (ILP) retains its ‘Buy’ rating with a revised target price of Rs106, following the release of its annual report and adjustments to its financial forecasts due to macroeconomic changes and energy supply concerns.

According to JS Global, the revision in Interloop’s target price reflects updated investment thesis and macro assumptions, particularly in response to the recent stabilization of the PKR/US$ exchange rate. With a lesser than anticipated depreciation of the PKR, there has been a slight downward revision in projected earnings compared to the previous forecasts.

The report also notes challenges such as the suspension of gas supply to Captive Power plants, mandated by IMF guidelines, which necessitates a shift to the national grid. This transition may affect the company’s production levels due to concerns about the consistent supply of power throughout the year.