Wednesday, September 22, 2010

Gamuda, MMC, MRCB to benefit from infra projects

OSK Research said key players involved in infrastructure development are expected to benefit from the implementation of the Economic Transformation Programme, including the RM36 billion KL mass rapid transit which features in the Greater Kuala Lumpur plan.

In a research note on Wednesday, Sept 22, it continued to see the beneficiaries being those involved in infrastructure development, including Gamuda (TRADING BUY, FV: RM4.00) and MMC Corp (TRADING BUY, FV: RM2.59) for the MRT and MRCB (TRADING BUY, FV: RM1.80), which may be involved in land development around KL.

“Do note that all these stocks have minimal or no upside to our fair values, and are very much Trading Ideas riding on positive sentiment from economic reform,” it said.

Wilmar target cut to $7.45 from $8.00

Morgan Stanley cuts Wilmar (F34.SG) target price to $7.45 from $8.00 after reducing FY10-12 earnings forecasts by average 9% to factor in plantation group’s weak 2010 results, later-than-expected 2H10 recovery in midstream margins, according to Dow Jones.

Morgan Stanley expects share price to be capped by lack of growth this year but still keeps Overweight call on view Wilmar remains most vertically integrated plantation play. “In addition, Wilmar has significant direct exposure to China and India, which makes it a rare emerging market play,” says research house. Shares +0.2% at $6.35.