Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 10): CIMB IB Research has maintained its “reduce” rating on Gamuda Bhd at RM2.75 with a higher target price of RM2.45 (from RM2.12) and said Gamuda’s stock surged 12% yesterday.

In a note today, the research house said it views this as sentiment running ahead of two unknown outcomes, of KVDT 2 and ECRL, in 1H19.

“Re-tendering of KVDT 2 and a downsized ECRL are the sector’s only two rail jobs in 1H19.

“In our view, tenders are likely competitive and less lucrative.

“We feel that the sentiment-driven re-rating has more than priced in potential positives. Retain Reduce with a higher target price of RM2.45,” it said.

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