Company Name: TENAGA NASIONAL BHD
Research House: MAYBANK
KUALA LUMPUR: Shares of TENAGA NASIONAL BHD  fell in late afternoon on Friday, April 8 as analysts maintained a Sell on the power giant due to the challenging business outlook.
At 3.07pm, Tenaga was down eight sen to RM6.11 with 699,000 shares done.
The FBM KLCI lost one point to 1,560.93. Turnover was 993.07 million shares done valued at RM1.17 billion. There were 375 gainers, 362 losers and 315 stocks unchanged.
Maybank Investment'' Bank Research had maintained Tenaga as a Sell due to the challenging business outlook stemming from high coal prices, a shortage of natural gas supply and remote possibility of a tariff hike.
'We now use the EV/EBITDA valuation metric (previously DCF) as we think it captures more accurately the true health of utility companies given their high gearing.
'Our new target price of RM5.73 is based on 5.8x FY12 EV/EBITDA ' consistent with its long-term average. This implies 12.0x FY12 earnings, which we think is fair for its multiple challenges,' it said.