Stock Name: FABER
Company Name: FABER GROUP BHD
Research House: OSK



OSK Research has maintained its "buy" recommendation on Faber Group at an unchanged target price of RM4.00, based on the standard operating procedure valuation.

In a research note today, OSK said its fair value is based on the assumption that the group's bid for the hospital support services (HSS) concession in Sabah, would be renewed as it is.

In view of its track record and expertise, denying Faber the renewal will run counter to the government's recent economic reforms, OSK said.

It has been reported that Warisan Harta Sabah SB (WHSB) has submitted a bid for the HSS in Sabah, which it deemed, is "competitive and on par" with Faber Group's for the concession.

"Although this piece of news will continue to dampen sentiment in the Faber stock, we believe the negative sentiment has been partly priced into the current share price, as it had been on a downtrend since news first emerged in early October.

"We believe the current uncertainty may present a buying opportunity for investors who are still hopeful of a favorable outcome," OSK explained.

The HSS concession under Faber expires in November next year. -BERNAMA