KUALA LUMPUR: BIMB HOLDINGS BHD [] extended its gains in early trade on Friday, June 24 after HwangDBS Vickers Research yesterday initiated coverage on the stock with a Buy rating and target price of RM2.40.
At 9.20am, BIMB rose 12 sen to RM1.97 with 2.24 million shares traded.
HwangDBS Vickers Research in a note June 23 said BIMB's core financing activities would drive its earnings and growth.
The research house also said the largely untapped Islamic finance market could expand its market share in the overall industry.
'Our RM2.40 TP is based on the Gordon Growth Model and assumes 4% long term growth rate, 10.3% cost of equity, and 13% ROE.
'Key catalysts are (i) earnings turnaround and sustainability; and (ii) untapped potential in Islamic finance in Malaysia and ASEAN region. BIMB is currently trading at 1.0 times FY11BV and our RM2.40 TP implies 1.4 times,' it said.
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At 9.20am, BIMB rose 12 sen to RM1.97 with 2.24 million shares traded.
HwangDBS Vickers Research in a note June 23 said BIMB's core financing activities would drive its earnings and growth.
The research house also said the largely untapped Islamic finance market could expand its market share in the overall industry.
'Our RM2.40 TP is based on the Gordon Growth Model and assumes 4% long term growth rate, 10.3% cost of equity, and 13% ROE.
'Key catalysts are (i) earnings turnaround and sustainability; and (ii) untapped potential in Islamic finance in Malaysia and ASEAN region. BIMB is currently trading at 1.0 times FY11BV and our RM2.40 TP implies 1.4 times,' it said.
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