RHB upgrades Lafarge Malayan Cement

RHB Research has upgraded Lafarge Malayan Cement to ‘Market Perform’ from ‘Underperform’ and raised the target to MYR7.43 from MYR5.94.

The research house says the new target is based on 17 x FY12 EPS of MYR0.437 sen in line with its two-year historical average.

RHB has also raised its FY12-14 earnings forecast by three per cent to 21 per cent mainly to reflect a higher domestic demand growth of five per cent per annum (from four per cent previously) and a higher selling price of MYR290/t (from MYR285/t previously).