KUALA LUMPUR (Sept 8): BIMB Securities Research has maintained its “Buy”rating on Eversendai Corporation Bhd at 71 sen with a lower target price of RM1.08 (from RM1.19) and said it was of the view that the upfront cost incurred in 2QFY15 could dampen overall earnings.
In a note today, the research house said it tweaked its FY15/16 projection for Eversendai lower by 14.3% and 8.9% to RM62 million and RM74 million respectively as collection of the afore-mentioned cost would take some time.
“On a positive note, prospects of the Group remain intact with the replenishment of its orderbook to continue.
“We believe there will be a few projects to be announced by year-end to meet our assumption of RM1.3 billion.
“Meanwhile we have a new target price of RM1.08 from RM1.19 previously following the earnings adjustment. Buy,” it said.