Confirmation of the legality of credit ratings has led to multiple upgrades in CTOS securities.

Kenanga Investment Bank research analysts pointed out that the Court of Appeal ruled that, according to common law, credit reporting agencies do not have a duty of care and can formulate and publish credit scores as part of the credit reporting business, in accordance with legal provisions.

Analysts believe that this can eliminate any existing doubts and ambiguities that may arise in future cases related to such legislation, namely the interpretation of credit reporting agencies.

Therefore, the analyst raised the rating of CTOS Digital from 'below the market' to 'above the market', and significantly increased the target price from the original 1.15 ringgit to 2 ringgit.

After this favorable ruling, the stock risk premium disappeared, we adjusted the weighted average cost of capital (WACC) discounted cash flow input from 7% back to 6%, and also increased the terminal growth rate to 3.5%, previously 0%.

Likewise, UOB Investment Bank research pointed out that since the legality of formulating and publishing credit scores is no longer in question, this will drive the business of CTOS Digital and its credit reporting agencies (CRAs).

This kind of judgment may prevent similar claims in the future.

The analyst said that this prevents CTOS Digital from facing potential large claims, reduces the risk premium, therefore, raises the target price to 1.84 ringgit, and maintains a 'hold' rating.

Also maintaining a 'hold' rating for CTOS Digital is Hong Leong Investment Bank Research.

Although the analysis by Fenglong Investment Bank believes that the above result is a positive victory for the company, based on the recent stock price performance, the market has already anticipated this favorable judgment.

Before the price plunged, CTOS Digital's annual high point was only at 1.52 ringgit, mostly trading sideways.

Therefore, analysts believe that the upside potential for the stock price may be quite limited from now on, so the target price has been slightly raised from 1.50 ringgit to 1.60 ringgit.

Looking back at the events, in March this year, the High Court ruled that CTOS Digital has no power to determine user credit ratings, and was ordered to compensate businesswoman Suriyat 0.25 million ringgit.

At that time, CTOS Digital's stock price once plummeted to a low of 1.06 ringgit per share, but then quickly rebounded and has now risen to 1.45 ringgit.

On Tuesday, the Court of Appeal unanimously overturned the High Court's ruling, CTOS Digital won the appeal without the need to compensate, and on the day of the announcement of the suspension of trading, the stock price surged by 7 cents or 5% to close at 1.45 ringgit, with a volume of 12.96 million shares.

Arriving on Wednesday, CTOS Digital's morning performance was stable with limited gains, and even briefly fell to 1.43 ringgit, after which the stock price remained in a sideways pattern.

At the close, CTOS Digital reported 1.45 ringgit with no significant changes, with a total daily trading volume of 22.73 million shares.