MIDF Research sees room for Gamuda's profit to exceed target

KUALA LUMPUR: MIDF Research sees ample room for Gamuda Bhd's financial year 2011's profit to exceed its 19% growth target year-on-year on more jobs rollouts in the future.

In a note on Tuesday, Mar 22, MIDF said the optimism was supported by Gamuda's earnings and margins improvements, the high likelihood of getting the tunnelling portion of the Mass Rapid Transit (MRT) project and contributions from property ventures.    

MIDF said Gamuda's gross margins year-on-year were expected to improve to 12% from 9% in the first quarter of 2010.

It said it would maintain its "buy" recommendation on Gamuda with an unchanged target price at RM4.68. — Bernama

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