Monday, February 21, 2011

RHB Research upgrades AMMB to Outperform, ups fair value to RM7.42

KUALA LUMPUR: RHB Research Institute has raised the fair value for AMMB HOLDINGS BHD [] to RM7.42 (target CY11 PER of 15x) from RM7.26.

'Given the steep underperformance in share price YTD, valuations have become attractive again. Upgrade to Outperform from market perform,' it said on Monday, Feb 21.

RHB Research said AMMB reported 3QFY03/11 net profit of RM325.3 million (+21.2% on-year; -2.3% on-quarter), in line with its and consensus expectations.

Quarter-on-quarter drop in net profit was mainly due to higher loan impairment allowances, +30.5% on-quarter on lower recoveries.

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