MIDF Research upgrades E&O to Neutral, raises target to RM2.05

KUALA LUMPUR (March 31): MIDF Research has upgraded Eastern & Oriental Bhd to “Neutral” (from Sell) with a higher target price of RM2.05 (from RM1.88) and said the launch of Tamarind Tower A (GDV: RM450 million) had received a good take up rate of 80%.

In a note today, the research house said sales of 49% stake in Jalan Conlay land to Mitsui will boost FY15 Core Net Income by RM48.8 million.

“E&O has formed a JV with Mitsui to develop service apartments on the land in Jalan Conlay

“Improved new sales prospects for FY15 but FY16 likely to be flattish

“Upgrade to Neutral with a higher target price of RM2.05,” it said.