KUALA LUMPUR (July 26): Hong Leong IB Research has maintained its “Hold” rating on CIMB IB Research Bhd at RM5.89 with an unchanged target price of RM5.80 and said post its meeting with CIMB’s management, it reiterates its neutral view on CIMB in FY18.
In a note today, the research house said CIMB’s management painted challenging outlook, especially on NII and NOII contribution.
“NII is at risk due to persistent NIM pressure in Niaga, whilst weak DCM and ECM activities post-GE14 are expected to continue until firmer economy direction.
“Nevertheless, subdued operating income will be partly mitigated by well contained opex and slowdown in provision.
“Maintain our earnings forecasts, target price of RM5.80 and Hold recommendation,” it said.