Kenanga ups Malaysia Building’s target price
KUALA LUMPUR, May 14 — Kenanga Research lifted the target price of Malaysia Building Society Bhd (MBSB) to RM2.70 a share despite the lender’s first-quarter earnings result coming in marginally below expectations.
“The stock’s valuation still looks undemanding at 5.9 times price-to-earnings ratio post adjustment, against its banking peers of 13.0 times,” the broker said in a research note today.
Maintaining outperform on the stock, Kenanga said MBSB offered potential capital upside of 21 per cent, with an additional dividend yield of 2.5 per cent, bringing the potential total return to 23 per cent over the next 12 months.
“Its return on equity of 28.1 per cent remains one of the highest for financial stocks,” it added.
By 10.25am, MBSB’s shares dropped 1.33 per cent to RM2.23 a share, underperforming Malaysia’s benchmark stock index, which shed 0.19 per cent. — Reuters