Analysts reckon that winning part of the RM1.7bil project would be a major boost for the local diversified group, whose core business is in construction. It is understood that the portion of job won by IJM is valued at RM974mil.
As it stands, a number of analysts have already upgraded their ratings on the stock.
The average target price for IJM based on Bloomberg’s poll of 18 analysts is currently at RM6.27 compared with its last-traded price on Friday at RM5.70, which represented a gain of 8 sen from the previous day.
According to an analyst from MIDF Research, IJM group is a prime candidate to bag another major job under the RM7.1bil West Coast Expressway (WCE) that’s recently been approved by the Government.
The WCE project is undertaken by West Coast Expressway Sdn Bhd, a 64.2%-owned subsidiary of Kumpulan Europlus Bhd (KEuro), in which IJM holds a 25% stake.
While construction jobs of the project will be through open tender, analysts believe IJM stands a high chance to win some jobs not only because of its interests in KEuro, but also because of its strong track record in undertaking expressway construction in the country as well as overseas.
from thestar.com.my
● The comments above do not represent a recommendation to buy or sell.
No comments:
Post a Comment