Mixed views on Magnum after IRB tax claim

PETALING JAYA: One research house has turned positive on embattled numbers forecast operator (NFO) Magnum Bhd, placing a “buy” call on the stock betting that it can resume its dividend payments, monetise a key asset and actually suffer a smaller claim by the taxman than expected.

UOB KayHian analysts Vincent Khoo and Yeoh Bit Kun have placed a target price of RM2 on Magnum and reckon that the market has “fully discounted the worst-case scenario that Magnum would need to fully settle the Inland Revenue Board’s (IRB) claim without recourse”.