Published: Monday June 25, 2012 MYT 8:46:00 AM
Maybank Research downgrades BIMB to Sell
KUALA LUMPUR: Maybank Kim Eng Investment Research said much as it continues to view Bank Islam's and Syarikat Takaful's (RM6.12, Not Rated) prospects positively, the recent run-up in BIMB's share price is cause to pause and take stock.
It said on Monday its sum-of-parts derived target price of RM3 for BIMB prices Bank Islam at a price-to-book value (PB/V) of 1.6 times (2012 returns on equity: 12.7%) and Syarikat Takaful at its current P/BV of 2.0 times, valuations which we believe are fair at this stage.
“For this reason and with the stock up 58% year-to-date, we are downgrading BIMB to a sell,” said Maybank Research.