KUALA LUMPUR (Nov 15): Kenanga IB Research has maintained its “Underperform” rating on Lafarge Malaysia Bhd with a lower target price of RM1.90 (from RM2.40) and said it expects the group’s 3Q18 results to track 2Q18 performance with a core loss of RM90.0 million bringing 9M18 core loss to RM247.5 million which accounts for 82% of house FY18 net loss estimates RM303.1 million.

In a note today, the research house said in view of still high current rebates trend, it anticipates continuous intense price war backed by overall subdued industry outlook and overcapacity.

“While lowering target price of RM1.90 from RM2.40, we maintain Underperform on the stock,” it said.