Stock Name: GAMUDA
Company Name: GAMUDA BHD
Company Name: GAMUDA BHD
| Research House: CIMB | Price Call: BUY | Target Price: 4.55 |
Target RM4.55
Malaysiakini's report on a suit triggered by the alleged breach of agreement by the MMC-Gamuda JV on the double tracking project is a negative surprise. But we are not too alarmed at this juncture as the trial is still at the early stages. The worst-case scenario is a 29% dent on FY13 EPS and a 2% dip in RNAV. But we retain our forecasts and target price (10% RNAV discount) pending an outcome from the trial. Gamuda remains a Trading Buy and one of our top sector picks.
Malaysiakini's report on a suit triggered by the alleged breach of agreement by the MMC-Gamuda JV on the double tracking project is a negative surprise. But we are not too alarmed at this juncture as the trial is still at the early stages. The worst-case scenario is a 29% dent on FY13 EPS and a 2% dip in RNAV. But we retain our forecasts and target price (10% RNAV discount) pending an outcome from the trial. Gamuda remains a Trading Buy and one of our top sector picks.
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