KUALA LUMPUR: GAMUDA BHD [] shares rose on Thursday, March 24 following AmResearch raising its target price to RM4.25 (from RM4.20 previously) and maintaining its Buy call on the stock.
At 4.30pm, Gamuda was up six sen to RM3.79 with 3.47 shares done.
AmResearch said the target price revision was to account for maiden contributions from the Sg. Buloh-Kajang MRT line as well as the Madge Mansion development, but partly mitigated by the likelihood of further delays to the double-tracking project.
The increasing newsflow on the Klang Valley MRT project would likely re-galvanise investor interest in Gamuda, it said.
The 51km-Sg. Buloh-Kajang route ' the first major line for the new MRT system ' appears set to take off. To be sure, pre-qualification tenders may be out next month ahead of the targeted commencement of CONSTRUCTION [] works by July 2011, it said.
'There are strong indications that the overall cost for the Sg. Buloh-Kajang line could be higher than expected at RM20 billion (our earlier estimates: about RM12 billion).
'By extension, this may imply more scope of works for Gamuda for the entire system ' which will reportedly cost over RM50 billion against the initial estimate of RM36 billion,' it said.
Gamuda is expected to announce its 2QFY11 results today.
At 4.30pm, Gamuda was up six sen to RM3.79 with 3.47 shares done.
AmResearch said the target price revision was to account for maiden contributions from the Sg. Buloh-Kajang MRT line as well as the Madge Mansion development, but partly mitigated by the likelihood of further delays to the double-tracking project.
The increasing newsflow on the Klang Valley MRT project would likely re-galvanise investor interest in Gamuda, it said.
The 51km-Sg. Buloh-Kajang route ' the first major line for the new MRT system ' appears set to take off. To be sure, pre-qualification tenders may be out next month ahead of the targeted commencement of CONSTRUCTION [] works by July 2011, it said.
'There are strong indications that the overall cost for the Sg. Buloh-Kajang line could be higher than expected at RM20 billion (our earlier estimates: about RM12 billion).
'By extension, this may imply more scope of works for Gamuda for the entire system ' which will reportedly cost over RM50 billion against the initial estimate of RM36 billion,' it said.
Gamuda is expected to announce its 2QFY11 results today.
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