February 28, 2011

PROTON - OSK Research downgrades Proton to Neutral from Buy

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

KUALA LUMPUR: OSK Research said PROTON HOLDINGS BHD []'s loss was a surprise, on the back of higher spending incurred for the turnaround of Lotus as well as the lower volume sold on the domestic side.

'We trim our earnings projections by 32% and 33% respectively for FY11 'FY12 and arrive at a lower TP of RM4.23 (from RM6.22), premised on 8x FY12 EPS.

'We highlight the risk of further expenditure incurred on account of Lotus amid concerns that the turnaround may take longer than expected. Downgrade to NEUTRAL from BUY,' it said on Monday, Feb 28.

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