Maybank IB says No re-rating catalysts for UMW, trims target price to RM10.10

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KUALA LUMPUR (April 2): Maybank IB Research has maintained its “Hold” rating on UMW Holdings Bhd (Fundamental: 2.20; Valuation: 1.10) at RM10.84 with a lower target price of RM10.10 and said it cut UMW’s FY15/16/17 earnings by 16%/5%/5% - 7%/0%/0% for the automotive division and 9%/5%/5% for the oil and gas (O&G) division.

“Caution on potential blip in 1HFY15 auto earnings (91% of FY14 PBT) from weaker Toyota vehicle sales and margins.

“Maintain Hold with a lower SOP-based target price of RM10.10 (-2%), having rolled forward valuations to 2016,” it said.

At 11.18am, UMW rose 1.11% or 12 sen to RM10.96 with 280,000 shares done.

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