KUALA LUMPUR (Feb 27): CIMB Equities Research is maintaining its trading buy recommendation on GAMUDA BHD [] at RM3.70 with a target price of RM4.45.
It said on Monday that PLUS Expressways Bhd is reportedly looking into taking over Gamuda’s Litrak, which would be good news for Gamuda if the price is right.
“Such a move would make sense but is unlikely to materialise soon. We retain our target price basis of 10% RNAV discount. A takeover move on Litrak would not have a big impact on RNAV but the proceeds could be used to bump up dividends.
“Maintain Trading Buy with project wins as catalysts. Gamuda remains one of our top sector picks,” CIMB Research said.
It said on Monday that PLUS Expressways Bhd is reportedly looking into taking over Gamuda’s Litrak, which would be good news for Gamuda if the price is right.
“Such a move would make sense but is unlikely to materialise soon. We retain our target price basis of 10% RNAV discount. A takeover move on Litrak would not have a big impact on RNAV but the proceeds could be used to bump up dividends.
“Maintain Trading Buy with project wins as catalysts. Gamuda remains one of our top sector picks,” CIMB Research said.
