KUALA LUMPUR (Dec 9): Shares of MBM Resources Bhd rose in late morning trade on Tuesday, after MIDF Research maintained its “buy” rating on the stock with a higher target price of RM4.80 (from RM3.90).
The research house is expecting MBM’s FY15 earnings to rebound strongly on more robust performance on all fronts.
At 11.08am, MBM Resources rose 1.09% or three sen to RM2.79 with 24,900 shares done.
In a note Tuesday, the research house said Perodua’s earnings should recover on Axia’s strong sales, as well as the soon-to-be-launched Perodua Myvi facelift.
“The collapse in yen is positive for Perodua which contributes more than 80% of MBM’s earnings. We estimate for every 1% change in the RM/¥100 rate would impact earnings by ±1.6%.
“Despite favourable macro factors, MBM’s share price has hardly reacted. Buy on MBM with a new target price of RM4.80,” it said.