Cost management: CIMB is a stock loved by investors for its liquidity, but they are also quick to punish it at the slightest hint of bearish sentiment.
PETALING JAYA: CIMB Equities Research has upgraded Malaysian Pacific Industries
Bhd (MPI) from “hold” to “add” with a higher RM9.70 target price due to the higher earnings growth, driven by a recovery in smartphone demand.
The research form said the higher target price was based on a higher 11.7 times 2018F price-to-earnings (P/E), a 10% discount to the sector P/E of 13 times (versus 20% previously) in view of stronger earnings growth projection from FY17 onwards, also supported by higher automotive and industrial sales and favourable currency movement.
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