GLOMAC (TP RM1.83– TRADING BUY) Initiating Coverage by OSK Research : A Rerating in the Horizon
We initiate coverage on Glomac with a Trading Buy call and a CY10 Target Price of RM1.83 based on 0.94x CY10 P/NTA, which is the average valuation for its closest comparable peers. Its cheap valuation, estimated at 0.7x CY10 P/NTA coupled with potentially strong earnings recovery in the immediate term, could well spur a re-rating on the stock. As our expected broad sector rebound starting from late 2010/early 2011 pans out, the investment community will gradually be drawn to fundamentally sound and still-undervalued property stocks like Glomac
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