KUALA LUMPUR: The shares of GAMUDA BHD [] advanced in early trade on Monday, Dec 20 after the Cabinet approved the RM36 billion KL mass rapid transit project.
At 9.35am, Gamuda was up four sen to RM3.87.
CIMB Research maintained its outperform call on the stock and raised its target price to RM5.45 (from RM5 previously) and said the appointment of Gamuda as the project manager increased the group's chances of bagging the RM13 billionn-RM14 billion tunnelling works.
'We are raising our FY11-13 EPS forecasts by 8-15% to factor in lower tax rates and MRT contributions.
'We are also upping our RNAV-based target price from RM5.00 to RM5.45 for MRT profits and the DCF value of the project management fees,' it said in a note Dec 20.
CIMB Research said the news was a potential re-rating catalyst, along with the award of MRT tunnelling works.
At 9.35am, Gamuda was up four sen to RM3.87.
CIMB Research maintained its outperform call on the stock and raised its target price to RM5.45 (from RM5 previously) and said the appointment of Gamuda as the project manager increased the group's chances of bagging the RM13 billionn-RM14 billion tunnelling works.
'We are raising our FY11-13 EPS forecasts by 8-15% to factor in lower tax rates and MRT contributions.
'We are also upping our RNAV-based target price from RM5.00 to RM5.45 for MRT profits and the DCF value of the project management fees,' it said in a note Dec 20.
CIMB Research said the news was a potential re-rating catalyst, along with the award of MRT tunnelling works.
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