Friday, January 7, 2011

OSK Research has Buy on SP Setia, TP RM7.23

KUALA LUMPUR: OSK Research said SP Setia's share price looks set to surpass its target price of RM6.58 and test the post-Asian crisis high of 3.1 times P/NTA, an indication that investors concur with its robust sector outlook.

The research house said on Friday, Jan 7 if the impending boom is indeed bigger than the 2007 upcycle, and given the stock's currently low foreign shareholding of 25% vs'' molre than 40% in 2007, then its current target valuation of 2.8x CY11 P/NTA appears conservative.

'Hence, we re-peg SP Setia to a higher P/NTA multiple of 3.1x, i.e. at its peak valuation in 2007, and arrive at a higher TP of RM7.23. Maintain as top sector BUY,' it said.

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