Tuesday, April 24, 2012

CIMB Group Holdings: Maintain Sell - Little Change In Guidance

Sell maintained.CIMB hosted its pre-results briefing yesterday with Dato' SriNazirRazak in attendance. The discussion was big picture in nature and the general tone continues to be upbeat. There was, however, little change in guidance and as usual, our Sell call is premised on expectations of CIMB's premium valuations narrowing against its conventional peers' amid capital market volatility, coupled with the risk of foreign selling owing to its 33% foreign shareholding. Our RM6.80 TP pegs on a target P/BV of 1.9x (2012 ROE: 16.1%).

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Source: Maybank Research - 24 April 2012

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