December 14, 2010

GAMUDA - OSK Research: Trading Buy on Gamuda, TP RM4.64

Stock Name: GAMUDA
Company Name: GAMUDA BHD
Research House: OSK

KUALA LUMPUR: OSK Research has a Trading Buy call on Gamuda'' Bhd with a Target Price of RM4.64, up from its previous RM4.31.

It said on Tuesday, Dec 14, it said the adjustments increased its sum-of-parts based TP from RM4.31 to RM4.64, which implied CY11 PER of 24 times. This is still close to its historical long term 1-year forward PER of 22 times.

'We maintain our TRADING BUY rating on Gamuda as we expect more positive news flow on the MRT to spur the share price higher. The Cabinet approval of the RM36bn KL MRT and appointment of Gamuda-MMC as the Project Delivery Partner should be the key news to watch,' it said.

Gamuda is set to report its 1QFY11 results this Friday, Nov 17 and OSK Research expects earnings to make up 20%-23% of its full year estimates.


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