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Wednesday, December 17, 2014

RHB Research upgrades Faber to Buy, raises target price to RM3.25

KUALA LUMPUR (Dec 17): RHB Research has upgraded Faber Group Bhd ( Financial Dashboard) to “Buy” (from Neutral) at RM2.40 with a higher target price of RM3.25 (from RM2.97) and said it deemed the recent PROPEL and Opus acquisition completion as a growth catalyst as it provides a more diversified earnings base for Faber.
In a note Wednesday, the research house said at FY15F P/E of 10.9x, ROE of 22.6% and 4.6% dividend yield, it was a good time to accumulate the stock, given that its price has gone down by 26.7% year-to-date.
“Faber’s hospital support services (HSS) contract agreement for northern West Malaysia and East Malaysia is to be renewed for another 10 years in 1Q15.
“Additionally, several new contracts have been secured under PROPEL and Opus for 2015, which are expected to lift growth potentials going forward,” it said.
At 9.57am, Faber fell 1.25% or three sen to RM2.37 with 34,800 shares done.
http://www.theedgemarkets.com/my/article/rhb-research-upgrades-faber-buy-raises-target-price-rm325

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