KUALA LUMPUR: CIMB Equities Research said it is maintaining its Neutral call or RM1.42 target price, which it continues to peg to a 70% discount to its sum-of-parts value.

“Prospects for Puncak remain anchored to the takeover of water assets in Selangor, which shows no signs of progress,” it said on Monday, Sept 12.

The research house said though the government’s move to privatise Indah Water Konsortium may benefit Puncak as it would give the group another concession, it is not excited about it as negotiations could be protracted and politics could get in the way.

“Puncak’s share price, which shot up 12.3% last Friday on speculation that 1MDB is looking to acquire the company, may come under pressure following a denial by Puncak’s management.