RHB Research keeps Neutral on Tasco, upgrades Paramount

  • Business
  • Wednesday, 26 Mar 2014

KUALA LUMPUR: RHB Research has downgraded Tasco to Neutral as its current share price has exceeded its fair value (FV) of RM2.30.

It said on Wednesday Tasco's stock had priced in the growth it projected earlier.

"As we suspect that the World Cup anomaly for Tasco may not be so apparent this year, there will not be a strong surge in earnings in the near term. Thus, we keep our earnings forecasts and RM2.30 FV unchanged," it said.

As for Paramount, RHB Research upgraded it to a Buy with a fair value of RM1.88.

Paramount bought 30.7 acres of land in Batu Kawan to replicate its Utropolis university township in Glenmarie, which adds another RM800mil in gross development value (GDV) to its portfolio.

"The purchase price of RM50 per sq ft is in line with the recent transactions. Meanwhile, we understand that some vacancies in the management team will be filled soon. Upgrade to Buy, with a new FV of RM1.88 (from RM1.71)," said RHB Research.

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