Stock Name: GAMUDA
Company Name: GAMUDA BHD
CIMB Research has upgraded from 'neutral' to 'outperform' rating for Gamuda Bhd with a higher target price of RM5.60 from RM3.98 as the Mass Rapid Transit (MRT) should re-emerge as Gamuda's next source of growth with one of the two lines likely to be launched in the second half of this year.
"Gamuda's competitive edge stems from its role as the main contractor for MRT tunnelling work and project development partner for the above-ground portion," it said in a research note today.
In addition, it said, the KL-Singapore High-Speed Rail and Johor
Baharu-Singapore Rapid Transit System were new opportunities on top of MRT, potentially providing further catalyst.
"Gamuda is one of our top sector picks," CIMB Research said.
For this year and next year, it said, Gamuda was vying for more than RM10 billion worth of new contracts, mainly from MRT 2 and 3 and the Gemas-Johor Baharu double-tracking project.
"Other potential positives are the likely disposal of its stake in highway operators Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd or Sprint and Lingkaran Trans Kota Holdings Bhd or Litrak, which eventually will lead to special dividends," it added.-- Bernama
Company Name: GAMUDA BHD
| Research House: CIMB | Price Call: BUY | Target Price: 5.60 |
CIMB Research has upgraded from 'neutral' to 'outperform' rating for Gamuda Bhd with a higher target price of RM5.60 from RM3.98 as the Mass Rapid Transit (MRT) should re-emerge as Gamuda's next source of growth with one of the two lines likely to be launched in the second half of this year.
"Gamuda's competitive edge stems from its role as the main contractor for MRT tunnelling work and project development partner for the above-ground portion," it said in a research note today.
In addition, it said, the KL-Singapore High-Speed Rail and Johor
Baharu-Singapore Rapid Transit System were new opportunities on top of MRT, potentially providing further catalyst.
"Gamuda is one of our top sector picks," CIMB Research said.
For this year and next year, it said, Gamuda was vying for more than RM10 billion worth of new contracts, mainly from MRT 2 and 3 and the Gemas-Johor Baharu double-tracking project.
"Other potential positives are the likely disposal of its stake in highway operators Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd or Sprint and Lingkaran Trans Kota Holdings Bhd or Litrak, which eventually will lead to special dividends," it added.-- Bernama
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