MAYBANK KE Research has maintained its "buy" call on Gamuda with a target price of RM5.30 for its earnings growth prospects and undemanding valuations. In a note on Monday, Maybank KE said Gamuda remains confident of clinching the project delivery partner (PDP) role for the Klang Valley Mass Rapid Transit 2 (KVMRT2) despite whispers on the contrary. "However, the Gemas-Johor Baru double track rail construction award has been further delayed to 2015 from late-2014. "Meanwhile, property sales has remained robust, especially in Horizon Hills . As for its water assets sale, potential invocation of S114 WSIA has raised concern on the offer value." It added that the risk of the invocation of S114 could induce short-term negative sentiment on the stock, although the impact on the water asset sales is not certain yet. The government's final go-ahead for the KVMRT 2 and appointment of its PDP is expected to be announced in first quarter of this year. "Gamuda-MMC is confident of clinching the PDP role, riding on their track record in managing the KVMRT 1 construction."
Most Popular Stories
- Major Phone Makers Sign Anti-Phone-Theft Pledge
- 'Beige Book' Federal Reserve Survey, April 2014: Full Text
- College Board Offers a Sneak Peak at New SAT
- Yellen Remarks, Market Data Give Stocks a Boost
- Yahoo Struggles Despite Alibaba Boost
- Chevrolet's Small SUV Coming to the U.S.
- Is This Job Too Good to Be True?
- Neil Young Closes Kickstarter Campaign for PonoMusic
- Castro Named as a Caress Fabulista
- Rapper Cuts Off Own Penis, Jumps Off Building in Failed Suicide