Monday, September 26, 2011

Proton down on gloomy medium-term outlook

KUALA LUMPUR: PROTON HOLDINGS BHD [] shares fell in early trade on Monday, Sept 26 on concerns that its medium-term earnings would be adversely impacted by factors including a bleak global economy and higher expense at its unit Lotus.

At 9.45am, Proton fell 11 sen to RM2.67 with 6,100 shares one.

MIDF Research in a note Sept 26 maintained its Neutral call on Proton but cut its target price to RM2.70 from RM3.30 previously.

'We are ascribing on a lower PER of 8x (previous 9x) based on industry peers with FY12f earnings and P/NTA of 0.4x given that Proton's medium term earnings prospect will be shadowed by the high expenses at Lotus Group and uncertain global macroeconomic outlook,' it said.


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