By BERNAMA
Kenanga Research has maintained “market perform” on Sime Darby Bhd despite its weaker third quarter performance.
The research house said strong liquidity in the local market is expected to limit share price downside.
“We would advocate a “buy on weakness” strategy when the share price falls below RM9.20,” it said in a research note today.
As at 11.39 am today, Sime Darby share price stood at RM9.46, with 469,900 shares shanging hands.
In another research note, HwangDBS Vickers Research has maintained “hold” call on Sime Darby as it did not expect a special dividend from gains in the healthcare spinoff.
However, it said, Sime Darby should continue to unlock more value from its diversified businesses and to invest using its large cash pile.
Meanwhile, Alliance Research has maintained “neutral” call on Sime Darby as it saw little catalyst for the group in the interim, as crude palm oil (CPO) price continued to be subdued and growth in the industrial and motor segments have slowed considerably.
“We view Sime Darby to be fully valued at current levels as the group trades slightly above their long-term mid-cycle price earning average,” it said in a note.
RHB Research has maintained “buy” call on Sime Darby as it believes the group being an integrated player with stable contributions from non-plantation related industries will have an earning buffer during a CPO price downturn.
“Sime Darby’s third quarter earnings were within but below our consensus forecast. Management remains fairly upbeat, expecting stronger earnings in the fourth quarter from the property and plantation divisions,” it said in a research note.
– BERNAMA
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