KUALA LUMPUR (Dec 17): CIMB IB Research has maintained its “Reduce” rating on Gamuda Bhd at RM2.28 with a lower target price of RM2.12 (from RM2.30) and said Gamuda’s 1QFY7/19 results constituted 28%/29% of consensus/house FY19 forecasts.

In a note Dec 16, the research house said it deemed this to be in line as it expects weaker quarters ahead.

“Ahead of the subdued job outlook and lower MRT 2 margins, the group aims to re-enter the overseas construction market. We are neutral on this.

“Maintain Reduce with a lower target price, as Gamuda has the largest exposure to the sector’s rail downturn. Revival of big-ticket infra projects is an upside risk,” it said.