Thursday, 19 April 2012

CIMB Research maintains Outperform on DRB-Hicom, target price RM4.60

KUALA LUMPUR (April 19): CIMB Research has maintained its Outperform rating on DRB-HICOM BHD [] at RM2.61 with a target price of RM4.60 and said Deftech’s tie-up with Tata Motors to develop and market the latter’s military vehicles to the Malaysian government is a feather in DRB-Hicom’s cap.

In a note April 19, the research house said support should be forthcoming from the government as it beefs up the nation’s defence capabilities.

“This new development reaffirms DRB’s long-term goal of becoming a local champion for the defence industry.

“We are retaining our Outperform call and SOP-based target price. DRB remains our preferred pick for exposure to the auto sector,” it said.

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