Friday 29 Mar 2024
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KUALA LUMPUR (Feb 17): Affin Hwang Capital Research has maintained its “Hold” rating on Bermaz Auto Bhd (Bauto) at RM1.89 with a lower target price (TP) of RM1.99 (from RM2.06) and said it believes the worst is over for the company, given that the car pricing issue in 1HFY20 has been resolved and an array of breath-taking new models should fuel long-term sales prospects.

However, in a note today, the research house said it foresees some share-price resistance because of the potential headwinds coming from a more competitive SUV market and weaker consumer sentiment.

“As such, we cut our FY20E earnings forecasts, but raise our FY21-22E earnings by 2%-5% to reflect the pent-up demand in car sales volume.

“Post our earnings revisions, we maintain our Hold rating on Bauto with a lower TP of RM1.99 (from RM2.06).

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