KUALA LUMPUR (Nov 12): CIMB IB Research has maintained its “Add” rating on Westports Holdings Bhd at RM3.75 with a higher target price of RM4.72 (from RM4.48) and said Westports’ 9M18 core net profit outperformed our previous full-year forecast by circa 5%, mainly as a result of stronger-than-expected volume growth.

In a note Nov 9, the research house raised its DCF-based target price to RM4.72, and increase our core EPS forecasts, as it lifted its FY18F volume forecast by 3.9%.

“Maintain Add, with upward consensus earnings revisions, the upcoming 13% tariff hike from March 1, 2019, and ‘Westports 2’ as the key re-rating catalysts,” it said.