KUALA LUMPUR (March 21): CIMB Equities Research said MRT Corp’s announcement of the award of MRT underground works to the Gamuda-MMC JV came earlier than expected and the RM8.2 billion project cost was higher than guided.
“This is good news for Gamuda and strengthens its position for MRT 2 & 3. We raise our EPS forecasts and target price from RM4.45 to RM4.50, pegged to an unchanged 10% discount to RNAV,” it said in a research report on Wednesday.
CIMB Research said it applied a higher CONSTRUCTION [] P/E of 13 times (12.6 times before), in line with its revised market P/E.
“Gamuda remains a Trading Buy and one of our top sector picks,” it said.
“This is good news for Gamuda and strengthens its position for MRT 2 & 3. We raise our EPS forecasts and target price from RM4.45 to RM4.50, pegged to an unchanged 10% discount to RNAV,” it said in a research report on Wednesday.
CIMB Research said it applied a higher CONSTRUCTION [] P/E of 13 times (12.6 times before), in line with its revised market P/E.
“Gamuda remains a Trading Buy and one of our top sector picks,” it said.
