KUALA LUMPUR: Maybank Investment Bank Research says Lafarge Malayan Cement is not on its Buy list.
It said on Tuesday, June 22 the share price remains firm (+6% year-to-date) despite poor 1Q10 results.
"Although Lafarge has the potential for a capital repayment, we think it may be too early to buy the stock," it said.
The research house said the factors were: (i) domestic cement demand has yet to show clear rebound, and demand optimism has had false starts in the past; (ii) capital repayment might materialise only in 2011.
"We maintain our Hold rating and TP of RM6.40 (12x 2011 PER)," it said.
It said on Tuesday, June 22 the share price remains firm (+6% year-to-date) despite poor 1Q10 results.
"Although Lafarge has the potential for a capital repayment, we think it may be too early to buy the stock," it said.
The research house said the factors were: (i) domestic cement demand has yet to show clear rebound, and demand optimism has had false starts in the past; (ii) capital repayment might materialise only in 2011.
"We maintain our Hold rating and TP of RM6.40 (12x 2011 PER)," it said.
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