AmResearch is maintaining its Buy on Westports
CMA CGM, which is Westports’ single-largest customer and largest member of the alliance, has designated Westports as its transshipment hub.
“Our discounted cashflow-based target price of RM4.90 implies a 2017E PER of 24 times and EV/EBITDA of 16 times, which are higher than our comparable universe.
“A premium valuation is warranted, in our view, given superior returns at more than 30% return on equity and strong free cashflow generation. We like Westports as an infrastructure pure play and as a proxy to rising consumption and industrialisation in Greater Klang Valley,” it said.
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