CIMB Research downgrades Berjaya Sports Toto, target price RM2.62

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KUALA LUMPUR (June 20): CIMB IB Research has downgraded Barjaya Sports Toto Bhd (BST) to “Hold” at RM2.60 with an unchanged target price of RM2.62 and said BST’s 12M19 net profit was above its expectation at 112% of house full-year forecast but in line at 101% of consensus due to lower-than-expected prize payout.

In a note June 19, the research house said BST’s 4QFY19 NFO PBT was up 20.7% q-o-q, mainly due to a lower-than-expected prize payout ratio during the quarter.

“Downgrade BST from Add to Hold as the share price is near our DDM-based target price. However, the stock should be supported by its 6.1% dividend yield,” it said.