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Saturday 30 November 2013

2013-11-23 [FA][G] Analysts upbeat on Maybank's valuation

source: [btimes]

Analysts upbeat on Maybank's valuation


KUALA LUMPUR: Malayan Banking Bhd's (Maybank) valuations have become attractive again following the 4.5 per cent swing in share prices since its second quarter results.


Maybank, Malaysia's top lender and Southeast Asia's fourth biggest by assets, outpaced the overall stock market's 4.3 per cent growth since the announcement.

The group posted its highest quarterly profit since its 1960s opening, with a 16.3 per cent surge in net profit to RM1.7 billion, in the third quarter to September 2013.

It recorded a RM1.5 billion net profit in the same quarter ended last year.

RHB Research Institute said Maybank will be one of the major beneficiaries of the Economic Transformation Programme.

It pointed out that Maybank's foreign shareholding level of around 22.5 per cent is down from the 26 per cent peak at end-May. 

"Hence, we think the risk-reward profile is tilting towards the positive mode again and, thereby, upgrade our call to 'buy' from 'neutral'," RHB Research said yesterday.

The firm has maintained its fair value on the stock at RM11.40.
Meanwhile, Hong Leong Investment is also positive on Maybank due to its improving domestic operations and expanding regional footprint, new divisions to better address competition, customer-centric policy, and the new investment bank outfit gaining traction.

The firm kept its target price of RM11.36 with return on equity of 15 per cent and an "overweight" recommendation.
Maybank closed four sen higher to RM9.59 yesterday.

Read more: Analysts upbeat on Maybank's valuation http://www.btimes.com.my/articles/20131123013100/Article/#ixzz2m8ffZukW

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