KUALA LUMPUR (April 19); CIMB Research has maintained its Neutral recommendation on BURSA MALAYSIA BHD [] at RM7.03 and cut its target price to RM7.28 (from RM7.65) and said trading activity was likely to weaken,
In a note April 19, the research house said it regarded Bursa’s 1Q12 net profit as being in line even though it came in at 27% of CIM Research’s full-year forecast and consensus numbers.
“1Q equity and derivative income was already down year-on-year.
“Given our cautious stance on the equity market, we now value Bursa at a 20% discount to its 5-year average P/E instead of 15%, which reduces our target P/E from 25.5x to 24x. We remain Neutral on the stock as it is expected perform in line with the market,” it said.
In a note April 19, the research house said it regarded Bursa’s 1Q12 net profit as being in line even though it came in at 27% of CIM Research’s full-year forecast and consensus numbers.
“1Q equity and derivative income was already down year-on-year.
“Given our cautious stance on the equity market, we now value Bursa at a 20% discount to its 5-year average P/E instead of 15%, which reduces our target P/E from 25.5x to 24x. We remain Neutral on the stock as it is expected perform in line with the market,” it said.
