TUNEINS (5230) : RHB Research maintains Buy on Tune Insurance
KUALA LUMPUR: RHB Research has maintained its Buy call on Tune Insurance with a target price of RM3 pegged to a 24 times FY15F P/E, as it is a growth stock withvaluations supported by a swift expansion and more partnerships.
"We believe the high combined ratio in 3Q14 results was caused by lumpy loss items that are merely temporary setbacks and should not hamper the stock’s long-term prospects," it said in a note on Tuesday.
It added that Tunes's 9M14 profit of RM50mil, at 63% of RHB's and street estimates, was below expectations due to lumpy claim items and lower earned travel policies from slow international travel growth.
"We lower our FY14 earnings forecas tby 6%. However, we believe these are just temporary setbacks and should not hamper Tune Ins’ swift expansion into a global player," it noted.
http://www.thestar.com.my
KUALA LUMPUR: RHB Research has maintained its Buy call on Tune Insurance with a target price of RM3 pegged to a 24 times FY15F P/E, as it is a growth stock withvaluations supported by a swift expansion and more partnerships.
"We believe the high combined ratio in 3Q14 results was caused by lumpy loss items that are merely temporary setbacks and should not hamper the stock’s long-term prospects," it said in a note on Tuesday.
It added that Tunes's 9M14 profit of RM50mil, at 63% of RHB's and street estimates, was below expectations due to lumpy claim items and lower earned travel policies from slow international travel growth.
"We lower our FY14 earnings forecas tby 6%. However, we believe these are just temporary setbacks and should not hamper Tune Ins’ swift expansion into a global player," it noted.
http://www.thestar.com.my
