Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (June 15): AffinHwang Capital Research has downgraded Felda Global Ventures Holdings Bhd (FGV) to “Hold” (from Buy) at RM1.68 with a lower target price price of RM1.92 (from RM2.13) and said FGV’s proposed acquisitions of 37% stake in BWPT and greenfield sugar project may be long term positive.

In a note today, the research house said high price paid, rise in financial leverage, potential short term EPS dilution and absence of moratorium on new FGV shares to be issued may not be well received by short to medium term investors.

“Taking a 10% discount to our previous 2016 PE target of 16x, target price is cut to RM1.92 and stock rating is downgraded from Buy to Hold,” it said.

      Print
      Text Size
      Share