KUALA LUMPUR: Top Glove Corp Bhd's target of grabbing 30 per cent of the global rubber gloves market share within the next five years is achievable if it fully utilises its production capacity.

OSK Research in a research note today said Top Glove could even achieve the target end-2012 as its annual capacity at full utilisation would total 45 billion pieces against global sales of 150 billion pieces a year.

Currently, the company's utilisation rate stands at 70 per cent with an annual capacity of 37 billion pieces.

The research house has also upgraded Top Glove's financial year 2012-2013 forecasts by 12-15 per cent.

However, another research house, ECM Libra Investment Research, said Top Glove's move to increase its production in anticipation of higher demand for powder-free and nitrile gloves could lead to excess capacity.

It said the assumption was based on the first quarter financial year 2012 sales which shrank five per cent compared to the same period last year.

ECM Libra has downgraded Top Glove's financial year 2012-2014 net profit by 19 per cent, downgraded the company's recommendation to "sell" from "hold" and cut its target price to RM4.00 from RM5.39 previously.

Meanwhile OSK Research has revised upwards Top Glove's recommendation to "buy" and increased its fair value to RM6.00 from RM4.52 previously.