Tuesday, September 20, 2011

Sime Darby comes off year-low

KUALA LUMPUR: SIME DARBY BHD [] shares recovered on Tuesday, Sept 20 and came off its 13-month low after MIDF Research said the price retracement had created a buying opportunity.

At 10.55am, Sime Darby added 12 sen to RM7.82 with 2.39 million shares traded.

MIDF Research in a note Sept 20 said the price retracement was a result of negative market movement rather than deteriorating fundamentals.

'Based on our target price of RM10.55 and dividend yield of 3.9%, we are expecting a total return of 40.91%, which exceeded our Buy recommendation threshold of 15%.

'We continue to like Sime Darby and maintain our Buy recommendation at unchanged target price of RM10.55, derived from sum-of-parts valuation,' it said.

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