August 30, 2010

PROTON - OSK Research maintains Buy on Proton

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

KUALA LUMPUR: OSK Research is maintaining its Buy call on PROTON HOLDINGS BHD [] at RM4.53 being the cheapest auto stock under its coverage which is only trading at forward PE of 7.2 times versus the sector average of 10 times.

The research house said on Monday, Aug 30 that it is not making any changes to its earnings estimates for Proton pending more clarification from management on how the injection to Lotus will be structured (whether a new issuance of shares will be involved).

'On its foray into the India market, we believe it is too early to tell how this would contribute to earnings (which we have not factored in yet) although we are still generally positive on whatever the outcome given the market potential,' it said.

OSK Research also said in the shorter term, Proton is expected to post favourable results on the back of its new model pipeline going forward in addition of the much improved operating landscape.


No comments:

Post a Comment