KUALA LUMPUR (June 27): Shares in Bermaz Auto Bhd rose to a multi-year high today after the stock rose 4.6% on positive analysts' outlook.
At 11.28am, Bermaz rose 12 sen to RM2.72 for a market capitalisation of RM3.16 billion.
According to Bloomberg data, there are 13 analysts providing coverage on the stock with two "outperform" and 11 "buy" ratings, and target prices (TP) ranging from RM2.76 to RM3.65.
In a sector update June 24, Kenanga IB Research said Bermaz, with an outperform rating and TP of RM3, was one of its two top picks in the sector for its superior margins, above-industry margin (average profit margin of circa 10% versus peers of circa 4%), steady dividend yield at 8%, and upcoming new models for the local and export market to sustain sales volume.
"Our TP is based on 13x CY20E EPS (earnings per share), which is at -0.5SD (standard deviation) of its three-year forward historical mean PER (price-earnings ratio)," it said.