CIMB Research maintains Buy on Gamuda, lowers target to RM5.43

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KUALA LUMPUR (Dec 17): CIMB IB Research has maintained its “Add” rating on Gamuda Bhd at RM4.40 with a lower target price of RM5.43 (from RM5.88) and said Gamuda’s annualised 1Q16 results were below expectations; EPS forecasts revised.

In a note today, the research house said timing issues for new jobs and depleting order book are temporary hurdles.

“Expect significant turnaround in order book backed by acceleration of MRT tenders. Non-MRT jobs are potential re-rating catalysts, in addition to Penang Transportation Masterplan.

“A buying opportunity ahead of positive newsflow. Still our top big cap pick,” it said.