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CIMB IB Research lowers target price for MISC to RM6.80

CIMB IB Research has maintained its “Hold” rating on MISC Bhd at RM7 with a lower target price of RM6.80 (from RM6.87) and said MISC’s 1Q18 core net profit of US$86.6 million was only 18% of house previous full-year forecast and 16% of consensus, below expectations by a wide margin.

In a note today, the research house said the main reason was the petroleum shipping division’s decline into steep losses, in addition to its overestimation of LNG and offshore profits.

“We cut our FY18-20F forecasts by 23-26% on lower crude tanker rate assumptions and reduce our target price to RM6.80, still at a 10% discount to SOP.

“Maintain Hold as there are few immediate catalysts for MISC’s share price,” it said.
Source: The Edge Markets

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