CIMB Research maintains Outperform on My E.G, ups target price to RM1.74

CIMB Research maintains Outperform on My E.G, ups target price to RM1.74
Business & Markets 2013
Written by theedgemalaysia.com
Thursday, 20 June 2013 09:20

KUALA LUMPUR (June 20): CIMB Research has maintained Outperform on My E.G Services Bhd at RM1.54 with a higher target price of RM1.74 (from RM1.57) and said MyEG’s management unleashed a few positive surprises at the research house’s Asia Pacific Conference.

In a note June 19, the research house said it saw this as a sign that the company was not resting on its laurels but is striving to move up the value chain.

CIMB Research said this was long-term positive for the company, adding that it was raising its FY14-15 EPS forecasts by 6-14% to reflect higher fees for its foreign workers annual permit renewal services (FWWPAR).

“This increases our target price, which is still based on 18.7x CY14 P/E (20% premium to our target market P/E).

“MyEG’s premium is backed by a solid 3-year EPS CAGR of 32%. Better-than-expected revenue growth and CSTM concession are the key catalysts. Maintain Outperform,” it said.