March 29, 2010

PROTON - Price Target News

Stock Name: PROTON
Company Name: PROTON HOLDINGS BHD
Research House: OSK

KUALA LUMPUR: OSK Research keeps Buy call on PROTON HOLDINGS BHD [] with target price of RM5.90 following fresh corporate developments with Volkswagen.

It said on Monday, March 29 that with Proton and DRB-Hicom's share prices on the uptrend last week, Proton CEO's confirmation that the company was in discussions with Volkswagen rekindled the speculation that a tie-up was imminent.

"With Volkswagen likely to set up its sedan CKD assembly plant in Malaysia, Proton's Shah Alam plant is a good site for that facility.

"Aside from this speculation, we continue to view Proton favourably from the fundamental angle with our fair value of RM5.90 based on a combination of 10x PER and 0.8x P/NTA," it said.

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