Thursday, November 17, 2011

IOI Corp dn, Maybank Research cuts stock to Hold

KUALA LUMPUR (Nov 17): IOI Corp Bhd share fell to a low of RM5.16 in thin trade on mild profit taking on Thursday while Maybank Investment Bank Research downgraded it to a Hold after the share price exceeded its target price.

At 11.14am, it was down four sen to RM5.19. There were 305,400 shares done at prices ranging from RM5.16 to RM5.21.

Maybank Research said IOI Corp's share price had surpassed its target price, up 12% since it last upgraded the stock on Aug 25 and up 20% from its recent bottom.

The research house said the first quarter earnings for the period ended Sept 30 were expected to be weaker on-quarter.

'Sentiment may be dampened by huge forex translation loss of c.RM230m in 1QFY12 following a weaker ringgit.

'We maintain our earnings forecasts pending the release of 1Q results on Nov 18. TP is unchanged at RM5.14 based on 16 times FY13 price-to-earnings ratio,' it said.

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