KUALA LUMPUR (Sept 11): CIMB IB Research has maintained its “Hold” rating on Lafarge Malaysia Bhd at RM5.95 with a higher target price of RM6.34 (from RM5.50) and said Lafarge’s post 2Q17 results briefing held no major surprises.

In a note today, the researhc house said the key positive was better visibility on the drivers of cement demand recovery in 2018.

CIMB Research said average cement prices have stabilised in 2Q17, though rebates remained high.

“In light of the still-lethargic market, Lafarge will sustain its cost optimisation moves.

“Lafarge’s expectation of a 4-5% cement volume decline in 2017 remains unchanged.

“FY17F EPS cut by 18.9%. Maintain Hold with a higher target price given the mixed outlook,” it said.