Thursday, June 23, 2011

CIMB Research has Buy on Gamuda at RM3.77

KUALA LUMPUR: CIMB Equities Research has a technical Buy call on GAMUDA BHD [] at RM3.77 at which it is trading at FY12 price-to-earnings of 14.5 times and price-to-book of 2.2 times.

It said on Thursday, June 23 Gamuda has broken out of its eight-month triangle pattern in May and it consolidated just above the triangle resistance turned support line throughout the month of June.

It said prices were about ready to retest the old high of RM4.26.

'We would be even more confident if prices can take out the near term resistance at RM3.95-4.00. Indicators are showing that buying momentum is picking up again.

'The stock is a buy now with a stop placed below the recent swing low of RM3.68. As long as the support at RM3.57 hold, we think that prices are likely to push higher to test the RM4.00 resistance and above,' it said.

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