Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Nov 25): CIMB Research has initiated coverage on Westports Holdings Bhd at RM3.27 with an Add rating and target price of RM4.57 and said Westports’ share price may be driven up in the months ahead by three potential catalysts, namely the start of the Ocean Three alliance, the renewal of the Investment Tax Allowance, and government approval to raise port tariffs.

In a note Nov 24, the research house said Westports was its top pick in the Malaysian transport space.

“We initiate Westports with an Add call and a probability-weighted DCF target price of RM4.57, incorporating different scenarios of the timing and quantum of the tariff hike.

“We expect the core EBIT 3-year CAGR of 10% to rise to 17% if port tariffs are raised 30% on 1 January 2016,” it said.

At 9.55am, Wsstports jumped 6.73% or 22 sen to RM3.49 with 1,94 million shares done.

 

 

      Print
      Text Size
      Share