KUALA LUMPUR (Oct 25): CIMB Investment Bank Bhd raised its target price for Bursa Malaysia Bhd shares to RM9 from RM8.86 after taking into account the stock exchange operator and regulator's 2017 earnings outlook.

In a note today, CIMB analyst Winson Ng said CIMB, however, maintained its "hold" rating on Bursa Malaysia shares.

"We cut our FY16–18 EPS forecasts by 5–8% due to reduction in projected revenue. However, our target price is raised to RM9 due to rollover to end-2017.

"Maintain 'hold' on Bursa given the uncertainty surrounding its equity market income," Ng said.

CIMB's note followed Bursa Malaysia's announcement on its third quarter financials.

Yesterday, Bursa Malaysia said net profit fell to RM44.04 million in the third quarter ended Sept 30, 2016 (3QFY16) from RM51.47 million a year earlier. Revenue was lower at RM119.4 million versus RM128.83 million.

9MFY16 net profit dropped to RM143.45 million from RM148.01 million a year earlier. Revenue was higher at RM383.05 million versus RM382.95 million.

Today, Ng said Bursa Malaysia's 9MFY16 net profit was below CIMB's and consensus forecast.

"At 67% of our full-year forecast and 71% of Bloomberg consensus estimates, Bursa's 9MFY16 net profit was below expectations," he said.

At 12:30pm, Bursa Malaysia shares fell five sen or 0.6% to RM8.75 for a market capitalisation of RM4.69 billion. The stock saw 21,700 shares traded.