Stock Name: PUNCAK
Company Name: PUNCAK NIAGA HOLDINGS BHD
Research House: KENANGA
Company Name: PUNCAK NIAGA HOLDINGS BHD
Research House: KENANGA
The proposed consolidation of water assets in Selangor is expected to be wrapped up by this year with more meaningful action by end-January.
In a note today, Kenanga Research said this was because the Selangor state government's offer would expire by then.
"We are also convinced the federal government will step in order to resolve the issue should the state government fails to wrap up the deal by the first half of 2011," it said.
Kenanga said the offer price for Puncak Niaga was somewhat considerably fair, as it was close to its target price of RM3.74.
It said the attractiveness of the offer also depended on the operation and maintenance (O&M) licence entitlement.
"Puncak Niaga may seek a higher price should the offer excluded its entitlement for O&M licence (post-consolidation)," it said.
Kenanga said it would maintain its 'buy' call on the company with an unchanged target price of RM3.74. -- Bernama
In a note today, Kenanga Research said this was because the Selangor state government's offer would expire by then.
"We are also convinced the federal government will step in order to resolve the issue should the state government fails to wrap up the deal by the first half of 2011," it said.
Kenanga said the offer price for Puncak Niaga was somewhat considerably fair, as it was close to its target price of RM3.74.
It said the attractiveness of the offer also depended on the operation and maintenance (O&M) licence entitlement.
"Puncak Niaga may seek a higher price should the offer excluded its entitlement for O&M licence (post-consolidation)," it said.
Kenanga said it would maintain its 'buy' call on the company with an unchanged target price of RM3.74. -- Bernama
No comments:
Post a Comment