KUALA LUMPUR: IJM Corp Bhd shares advanced in the afternoon session on Monday, Oct 25 after AmResearch maintained its buy call on the stock at RM5.48 and raised its target price RM6.30 based on the sum-of-parts methodology.
It said the upcoming months would likely be momentous for IJM ' with news flow momentum focusing on an expected re-acceleration of contract flows, exciting presales pipeline and exposure to rising crude palm oil (CPO) prices via IJM PLANTATION []S BHD [] (IJMP).
"We recommend a switch from GAMUDA BHD [] to IJM as our top large-cap pick for the CONSTRUCTION [] sector, given the latter's cheaper valuation (11%-20% discount on FY11F-12F earnings).
"IJM's foreign shareholding has nudged up to ~33% currently, but still below its peak of 65% in mid-2007," it said in a note on Monday.
It said the upcoming months would likely be momentous for IJM ' with news flow momentum focusing on an expected re-acceleration of contract flows, exciting presales pipeline and exposure to rising crude palm oil (CPO) prices via IJM PLANTATION []S BHD [] (IJMP).
"We recommend a switch from GAMUDA BHD [] to IJM as our top large-cap pick for the CONSTRUCTION [] sector, given the latter's cheaper valuation (11%-20% discount on FY11F-12F earnings).
"IJM's foreign shareholding has nudged up to ~33% currently, but still below its peak of 65% in mid-2007," it said in a note on Monday.
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