MUHIBAH (5703) : MIDF Research starts coverage on Muhibbah, target price RM2.74
KUALA LUMPUR (Dec 18): MIDF Research has initiated coverage on Muhibbah Engineering (M) Bhd with a “Buy” rating at RM1.71 and target price of RM2.74.
In a note Thursday, the research house said Muhibbah’s current outstanding order book to the tune of RM2.5 billion was expected to support the company’s earnings over the next two years. Fundamentals remain intact.
“Current share price weakness due to the decline in crude oil price is an opportunity for investors to accumulate. We are sanguine that oil prices will recover in due course to fully reflect the cost of major producers, albeit not to the levels seen in 2QCY14.
“We expect projects that have high impact to economic growth shall be spared the chop due to its long term significance,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Dec 18): MIDF Research has initiated coverage on Muhibbah Engineering (M) Bhd with a “Buy” rating at RM1.71 and target price of RM2.74.
In a note Thursday, the research house said Muhibbah’s current outstanding order book to the tune of RM2.5 billion was expected to support the company’s earnings over the next two years. Fundamentals remain intact.
“Current share price weakness due to the decline in crude oil price is an opportunity for investors to accumulate. We are sanguine that oil prices will recover in due course to fully reflect the cost of major producers, albeit not to the levels seen in 2QCY14.
“We expect projects that have high impact to economic growth shall be spared the chop due to its long term significance,” it said.
http://www.theedgemarkets.com
