MBMR (5983) : MIDF Research maintains Buy on MBM Resources, ups target price to RM4.80
KUALA LUMPUR (Dec 9): MIDF Research has maintained its “Buy” rating on MBM Resources Bhd with a higher target price of RM4.80 (from RM3.90) and said it expects MBM’s FY15 earnings to rebound strongly on stronger performance at all fronts.
In a note Tuesday, the research house said Perodua’s earnings should recover on Axia’s strong sales as well as the soon-to-be-launched Perodua Myvi facelift.
“The collapse in Yen is positive for Perodua which contributes more than 80% of MBM’s earnings. We estimate for every 1% change in the RM/¥100 rate would impact earnings by ±1.6%.
“Despite favourable macro factors, MBM’s share price has hardly reacted. Buy on MBM with a new target price of RM4.80,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Dec 9): MIDF Research has maintained its “Buy” rating on MBM Resources Bhd with a higher target price of RM4.80 (from RM3.90) and said it expects MBM’s FY15 earnings to rebound strongly on stronger performance at all fronts.
In a note Tuesday, the research house said Perodua’s earnings should recover on Axia’s strong sales as well as the soon-to-be-launched Perodua Myvi facelift.
“The collapse in Yen is positive for Perodua which contributes more than 80% of MBM’s earnings. We estimate for every 1% change in the RM/¥100 rate would impact earnings by ±1.6%.
“Despite favourable macro factors, MBM’s share price has hardly reacted. Buy on MBM with a new target price of RM4.80,” it said.
http://www.theedgemarkets.com
