Stock Name: JOBST
Company Name: JOBSTREET CORPORATION BHD
Research House: OSK
KUALA LUMPUR: OSK Research says JobStreet's valuations have become rather expensive at FY10 PER and it is maintaining its Neutral stance. It said on Friday, April 9 that looking at JobStreet's historical PER since its listing in 2005, the company is trading near its peak valuation based on FY10 PER. "Based on FY10 earnings, we increase our fair value to RM1.80 by pegging the stock's historic high 18.5x PER compared to 15x previously as expectations of (Australian Stock Exchange-listed) SEEK Ltd buying more shares and a strong equity market are likely to support a higher valuation," it said. SEEK, which initially only owned a 10% stake in JobStreet in 2008, started accumulating more JobStreet shares from February 2010. Within two months, SEEK has raised its shareholdings in JobStreet to 22.4% as at March 31, 2010. OSK Research said the recent strengthening in JobStreet's share price could have been mainly supported by SEEK's accumulation. In view of JobStreet's rather expensive FY10 PER, it is maintaining its Neutral stance. "There have been a few rounds of meetings between JobStreet and SEEK. As far as we know, it is unlikely that a major business tie-up will be announced soon. "However, as SEEK already owns more than 20% interest in JobStreet and is also the latter's single largest shareholder, we believe it is a matter of time that the two companies will embark on business ventures together," it said.
Company Name: JOBSTREET CORPORATION BHD
Research House: OSK
KUALA LUMPUR: OSK Research says JobStreet's valuations have become rather expensive at FY10 PER and it is maintaining its Neutral stance. It said on Friday, April 9 that looking at JobStreet's historical PER since its listing in 2005, the company is trading near its peak valuation based on FY10 PER. "Based on FY10 earnings, we increase our fair value to RM1.80 by pegging the stock's historic high 18.5x PER compared to 15x previously as expectations of (Australian Stock Exchange-listed) SEEK Ltd buying more shares and a strong equity market are likely to support a higher valuation," it said. SEEK, which initially only owned a 10% stake in JobStreet in 2008, started accumulating more JobStreet shares from February 2010. Within two months, SEEK has raised its shareholdings in JobStreet to 22.4% as at March 31, 2010. OSK Research said the recent strengthening in JobStreet's share price could have been mainly supported by SEEK's accumulation. In view of JobStreet's rather expensive FY10 PER, it is maintaining its Neutral stance. "There have been a few rounds of meetings between JobStreet and SEEK. As far as we know, it is unlikely that a major business tie-up will be announced soon. "However, as SEEK already owns more than 20% interest in JobStreet and is also the latter's single largest shareholder, we believe it is a matter of time that the two companies will embark on business ventures together," it said.
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