Friday, November 11, 2011

DRB-Hicom up in early trade

KUALA LUMPUR (Nov 11): DRB-HICOM BHD [] shares advanced in early trade on Friday, Nov 11 after CIMB Research initiated coverage on the stock with an Outperform rating and target price of RM3.95 based on 10% RNAV discount.

CIMB Research in'' a note Nov 11 said a series of catalysts in rapid succession ' VW agreement, armoured vehicle contract, POS Malaysia acquisition ' would transform DRB-Hicom into a strategic conglomerate, unlocking value and earnings growth on multiple levels.

At 9.10am, DRB-Hicom added 10 sen to RM2.15 with 339,700 shares traded.

'All its key businesses (autos, concession, finance, property) are at an earnings inflection point.

'The stock is on our high conviction list as it is trading at 8x CY13 P/E and below its RM2.60 NTA,' said CIMB Research.

No comments:

Post a Comment