CIMB IB Research ups target price for IOI Corp to RM4.74

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KUALA LUMPUR (Sept 13): CIMB IB Research has maintained its “Hold” rating on IOI Corporation Bhd at RM4.55 with a higher target price of RM4.74 (from RM4.49) after IOI Corp entered into an agreement to sell 70% of its stake in Loders.

In a note today, the research house said it was positive on this as it views the selling price for the 70% stake to be attractive.

“There are also plans to distribute 20% of the proceeds to shareholders as dividends.

“The sale will lead to a one-off gain of RM2.5bn and reduce its gearing ratio to 0.34x.

“We raise our SOP target price to reflect higher valuations for Loders. Maintain Hold,” it said.