|CIMB Research upgrades MRCB to Neutral, cuts TP to RM1.35|
|Business & Markets 2013|
|Written by theedgemalaysia.com|
|Wednesday, 13 February 2013 09:02|
In a note Wednesday, the research house said the EPS and RNAV dilution was partially offset by the longer-term positives.
“We estimate a 12% dilution to FY14 EPS but maintain our forecasts pending completion of the deal. Even after imputing the surplus value of the new landbank and applying an unchanged RNAV discount of 40%, our target price is lowered due to the 10% dilution to RNAV.
“Though this deal may trigger a reprieve to share price, we upgrade the stock from Underperform to Neutral in view of election risks,” it said.