Eversendai falls 5% on lower earnings, TP cuts

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KUALA LUMPUR (Dec 1): Shares of Eversendai Corporation Bhd fell 5.04% at mid-morning on Monday after the company’s earnings came below analysts’ expecations.

At 10.30am, Eversendai fell 3.5 sen to 66 sen with 29,300 shares traded.

BIMB Securities Research downgraded Eversendai to Sell at 70 sen with a revised target price of 59 sen and said Eversendai’s 9MFY14 results came in below house and that of consensus accounted for only 36.8% and 33.9% of total earnings projection.

Meanwhile, MIDF Research maintained its Neutral rating on the stock cut its target price to 58 sen (from 99 sen) and said the company’s 9MFY14 earnings came in below house and consensus expectations.

MIDF Research said the lower earnings due to slower pace of project works and higher expenses incurred.

“With a lower-than-expected 9MFY14 numbers, we have revised downwards our FY14 and FY15 earnings forecasts,” it said.