PLUS up after MIDF Research raises target price to RM4.70

PLUS Expressway Bhd's share price rose on Tuesday, Sept 21 after MIDF Research maintained its buy call and upped its target price for the stock to RM4.70 (from RM4.30).

The Edge Financial Daily had reported that PLUS, with its partner IDFC Projects Ltd (IP), had won a tender from the National Highway Authority of India (NHAI) to build four lanes of the Jetpur-Somnath Section of the National Highway 8D in Gujarat, India.

At 9.25am, PLUS was up three sen to RM4.18 with 271,800 shares traded.

MIDF Research said it continued to like PLUS as a strong defensive stock and its attractive dividend yields of 4% to 5%.

"PLUS had already announced an interim dividend of 7.5 sen for 2Q10 and we believe that PLUS would be able to give a dividend yield of 4.4% at current price in FY10.

"We expect PLUS' good performance to continue and its overseas highway to start contributing. Our target price is based on DDM valuation, discounted at its WACC of 8.7%," said MIDF Research.


Written by Surin Murugiah
The Edge Malaysia