RHB Research maintains Buy on Prestariang, trims fair value to RM2.25

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KUALA LUMPUR (June 26): RHB Research has maintained its Buy rating on Prestariang Bhd at RM1.89 with a revised fair value (FV) of RM2.25 (from RM2.27) after Prestariang announced a private placement of up to 44.0 million new shares (10% of its outstanding share base of 440.0 million shares) yesterday, which could raise RM70 million-RM80 million.
In a note Thursday, the research house said it expects management to utilise the proceeds on new projects, which it believed would soon be unveiled, to beef up Prestarian’s recurring earnings base.
“Maintain Buy for now, with our FV fine-tuned to RM2.25 (or MYR2.05 post-completion of the exercise),” it said.