KUALA LUMPUR (March 5): RHB Research Institute has revised its forecast for Berjaya Sports Toto’s for FY04/12-14 upwards by 0.8%-5.4% to take into account the higher number of draws after including the special draws and the lower sales per draw assumptions.
It said on Monday that despite its revised earnings forecasts, its DCF-based fair value remains relatively unchanged at RM4.85.
“However, given our more upbeat outlook on the economy, we believe BToto’s defensive nature may no longer appeal to investors in the medium term, who are now looking for higher beta stocks,” it said.
RHB Research it also believes earnings prospects from the 4D jackpot have already largely been reflected in its share price and consensus estimates.
“As such, we are downgrading our recommendation on the stock to a Market Perform (from outperform),” it said.
It said on Monday that despite its revised earnings forecasts, its DCF-based fair value remains relatively unchanged at RM4.85.
“However, given our more upbeat outlook on the economy, we believe BToto’s defensive nature may no longer appeal to investors in the medium term, who are now looking for higher beta stocks,” it said.
RHB Research it also believes earnings prospects from the 4D jackpot have already largely been reflected in its share price and consensus estimates.
“As such, we are downgrading our recommendation on the stock to a Market Perform (from outperform),” it said.
