KUALA LUMPUR (Jan 13): RHB Research Institute has downgraded FABER GROUP BHD [] to underperform from market perform but maintains its sum-of-parts (SOP) fair value of RM1.53.
It said on Friday that following two earlier lawsuits, the company now faces a third claim by Sweet Home Technical Works for earlier contract works in UAE amounting to approximately RM11.2 million.
“Still too early to determine the impact of the recent lawsuits but we are increasingly concerned that Faber could face more lawsuits, going forward,” it said.
“SOP fair value estimate of RM1.53 kept unchanged. However, recent run-up in Faber’s share price on growing expectations of the government concession renewal means that it is no longer in line with our expected market return. Downgrade to Underperform from market perform,” it said.
It said on Friday that following two earlier lawsuits, the company now faces a third claim by Sweet Home Technical Works for earlier contract works in UAE amounting to approximately RM11.2 million.
“Still too early to determine the impact of the recent lawsuits but we are increasingly concerned that Faber could face more lawsuits, going forward,” it said.
“SOP fair value estimate of RM1.53 kept unchanged. However, recent run-up in Faber’s share price on growing expectations of the government concession renewal means that it is no longer in line with our expected market return. Downgrade to Underperform from market perform,” it said.
