CIMB Research downgrades Uzma to Hold, target RM2.65

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KUALA LUMPUR (Feb 27): CIMB Research has downgraded Uzma Bhd to "Hold" (from Add) at RM2.46 with an unchanged target price of RM2.65 and said  Uzma’s FY14 core net profit was well in line within expectations, making up 99% of house full-year forecast and 98% of consensus.

In a note today, the research house said that as expected, there was no dividend declared.

"Uzma continued its aggressive expansion in 2014, and 2015 is set to be another exciting year for the group. We make no change to our FY15-16 EPS forecasts, and introduce our FY17 numbers. We keep our
target price, valuing the stock at 10.5x CY16 P/E, still at a 30% discount to the oil & gas big caps.

"However, due to the recent surge in its share price, which has jumped 86.4% from its one-year low in Dec 2014 and 43.0% YTD, we are downgrading Uzma to a Hold from an Add, as we believe the stock is now fairly valued. Switch to our top oil & gas small cap pick Perdana Petroluem Bhd," it said.

At 12.13pm, Uzma fell 2.44% or 6 sen to RM2.40 with 668,600 shares done.