Stock Name: EONCAP
Company Name: EON CAPITAL BHD
Research House: OSK
OSK has maintained its "neutral" call on EONCap stock at an unchanged target price of RM7.30, despite the decent first half year 2010 financial numbers release yesterday.
It said the stand reflected the takeover offer price from Hong Leong Bank, given the high probability of the deal being completed.
"Even if we were to roll forward our valuation parameters to FY11, on a more optimistic scenario, we would derive target price of RM7.60, which is marginally above the offer price from HLB," it said in its research note today.
OSK said EONCap's first-half 2010 results were above expectations.
The group continued to report healthy annualised deposit growth rates of 13.2 per cent, while its capital buffers remained steady at 14.1 per cent for risk-weighted capital ratio and 13.2 per cent for tier 1 capital.
Meanwhile, MIDF Research also maintained its neutral call on the stock with target price also unchanged at RM7.10.
"We retain our view that we expect competition for deposits to be stiffer as banks compete for deposits in anticipation of more hikes in overnight policy rate (OPR).
"We expect net interest margins of the banking groups to be normalised back as due to higher rates for deposits offered by banks," it added.- Bernama
Company Name: EON CAPITAL BHD
Research House: OSK
OSK has maintained its "neutral" call on EONCap stock at an unchanged target price of RM7.30, despite the decent first half year 2010 financial numbers release yesterday.
It said the stand reflected the takeover offer price from Hong Leong Bank, given the high probability of the deal being completed.
"Even if we were to roll forward our valuation parameters to FY11, on a more optimistic scenario, we would derive target price of RM7.60, which is marginally above the offer price from HLB," it said in its research note today.
OSK said EONCap's first-half 2010 results were above expectations.
The group continued to report healthy annualised deposit growth rates of 13.2 per cent, while its capital buffers remained steady at 14.1 per cent for risk-weighted capital ratio and 13.2 per cent for tier 1 capital.
Meanwhile, MIDF Research also maintained its neutral call on the stock with target price also unchanged at RM7.10.
"We retain our view that we expect competition for deposits to be stiffer as banks compete for deposits in anticipation of more hikes in overnight policy rate (OPR).
"We expect net interest margins of the banking groups to be normalised back as due to higher rates for deposits offered by banks," it added.- Bernama
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