CIMB Research keeps Hold on Westports, lowers target to RM3.84

CIMB Research keeps Hold on Westports, lowers target to RM3.84

CIMB Research keeps Hold on Westports, lowers target to RM3.84

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KUALA LUMPUR (June 2): CIMB IB Research has maintained its “Hold” rating on Westports Holdings Bhd at RM4.06 with a lower target price of RM3.84 (from RM3.90) after Westports guided that its FY17F volumes would decline by a “single-digit percentage” year-on-year.

In a note June 1, the research house said that based on the data provided, it now revised house FY17F volume decline assumption from 2.8% to 4.2%, with a larger-than-expected transhipment (t/s) volume drop.

“However, the impact on our earnings forecast is immaterial, since gateway volumes are growing faster than expected and we have raised our forecast accordingly.

“We maintain our Hold call, with a slightly lower DCF-based target price of RM3.84,” it said.