Proton and Lotus turnaround heading in right direction, says CIMB Research

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KUALA LUMPUR (April 13): CIMB Research has maintained its “Hold” rating on DRB-Hicom Bhd at RM1.97 with an unchanged target price of RM2.30 and said that with most of the conglomerate’s businesses steady and some of them chalking up commendable growth, returning Proton to sustainable profitability remains the biggest task for DRB’s management due to the former’s size and impact on the group’s bottom line.

In a note April 10, the research house said it made no changes to its EPS forecasts and NTA-based target price and maintained its Hold call.

“Although both Proton and Lotus are still in the red, there have been positive signs, and we believe the turnaround is heading in the right direction.

“Switch to Berjaya Auto Bhd, our sector top pick,” it said.