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Hot Stock Evergreen rises 3.66% after CIMB Research starts coverage
by Cals Tue 21 Jul 2015, 16:52
Hot Stock
Evergreen rises 3.66% after CIMB Research starts coverage
KUALA LUMPUR (July 21): Shares of Evergreen Fibreboard ([You must be registered and logged in to see this image.] Financial Dashboard) rose and were among the top gainers in early trade today after CIMB Research initiated coverage on Evergreen with an “Add” rating at RM1.82 and target price of RM2.90 and said Evergreen was one of Asia’s leading medium-density fibreboard (MDF) manufacturers.
At 9.10am, Evergreen rose 3.66% or 7 sen to RM1.98 with 1.03 million shares traded.
In a note July 20, the research house said that after difficult years in 2012-14, Evergreen was poised for an extraordinary turnaround from FY15 onwards, driven by a strong dollar, falling raw material costs and internal restructuring.
“We initiate coverage on Evergreen with an Add rating and target price of RM2.90 (60% upside).
“We value Evergreen at FY16 P/E of 12.5x, in line with the MDF/PB sector average. 2015-2016 should see a strong re-rating as investors reward US dollar plays.
“With the potential sale of non-core assets, Evergreen has room to raise dividends substantially over the next two years,” it said.
Evergreen rises 3.66% after CIMB Research starts coverage
KUALA LUMPUR (July 21): Shares of Evergreen Fibreboard ([You must be registered and logged in to see this image.] Financial Dashboard) rose and were among the top gainers in early trade today after CIMB Research initiated coverage on Evergreen with an “Add” rating at RM1.82 and target price of RM2.90 and said Evergreen was one of Asia’s leading medium-density fibreboard (MDF) manufacturers.
At 9.10am, Evergreen rose 3.66% or 7 sen to RM1.98 with 1.03 million shares traded.
In a note July 20, the research house said that after difficult years in 2012-14, Evergreen was poised for an extraordinary turnaround from FY15 onwards, driven by a strong dollar, falling raw material costs and internal restructuring.
“We initiate coverage on Evergreen with an Add rating and target price of RM2.90 (60% upside).
“We value Evergreen at FY16 P/E of 12.5x, in line with the MDF/PB sector average. 2015-2016 should see a strong re-rating as investors reward US dollar plays.
“With the potential sale of non-core assets, Evergreen has room to raise dividends substantially over the next two years,” it said.
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