Maybank IB retains ‘buy’ call on Litrak

With most businesses resuming since May 4 and schools fully restarting yesterday, the bank thinks that traffic at both the Damansara-Puchong expressway (LDP) and SPRINT Highway will continue to recover, though they may not return to their pre-movement control order (MCO) levels under the new normal.

PETALING JAYA: Maybank Investment Bank Research (Maybank IB) is retaining its “buy” call on highway operator Lingkaran Trans Kota (Litrak) despite cutting traffic forecasts, which led to lower earnings forecasts and the discounted cashflow target price (TP).

With most businesses resuming since May 4 and schools fully restarting yesterday, the bank thinks that traffic at both the Damansara-Puchong expressway (LDP) and SPRINT Highway will continue to recover, though they may not return to their pre-movement control order (MCO) levels under the new normal.