DJ MARKET TALK: Maybank Upgrades Proton To Buy; Doubles Target
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0229 GMT [Dow Jones] STOCK CALL: Maybank Investment Bank Research upgrades Proton (5304.KU) to Buy from Sell on optimism of a foreign automaker taking a strategic stake; says P/B value, EV/EBITDA valuations low vs comparable companies, raises target to MYR5.00 from MYR2.50, pegged at 0.5X P/B vs previous 0.3X, but still at steep 50% discount to regional peers. Notes market talk a European automaker is looking to take strategic stake in Proton, but gives no further details. House says an established foreign partner is vital to Proton's long-term competitiveness; but keeps earnings outlook unchanged for now. Stock last down 1.3% at MYR3.69.(ECH)
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