At 10.16am, Signature rose 15 sen to RM2.53 with 104,670 shares done.
CIMB Research maintained its “Add” rating on the stock at RM2.38 with a higher target price of RM5.08 (from RM4.23) and said that at 121% of house full-year forecast, Signature’s 9MFY15 annualised net profit was above its expectations, mainly due to stronger-than-expected revenue and economies of scale.
“We raise our FY15-17 EPS forecasts by 16% to 23% to reflect higher top line growth. We also increase our target price while retaining our valuation basis of 30% discount to SOP to reflect its small market cap.
“The strong 3QFY15 net profit results and securing major contracts are potential re-rating catalysts for the stock. Signature remains an Add,” it said.
SIGN (7246)
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