What is Evergreen's fair market price? One way is to compare its 2015 estimated PE ratio with its peer Vanachai , Thailand. Vanachai's PE ratio is 16. Evergreen's PE ratio has recently increased significantly to about 12 given the recent share price appreciation. If Evergreen's PE ratio were to be 16, then it's fair value can be Rm2.55. It should be able to achieve this by the end of the year.
CIMB Research has initiated coverage on Evergreen Fibreboard Bhd ( Financial Dashboard) with an “Add” rating at RM1.82 and target price of RM2.90 and said Evergreen was one of Asia’s leading medium-density fibreboard (MDF) manufacturers.
In a note July 20, the research house said that after difficult years in 2012-14, Evergreen was poised for an extraordinary turnaround from FY15 onwards, driven by a strong dollar, falling raw material costs and internal restructuring.
“We initiate coverage on Evergreen with an Add rating and target price of RM2.90 (60% upside).
“We value Evergreen at FY16 P/E of 12.5x, in line with the MDF/PB sector average. 2015-2016 should see a strong re-rating as investors reward US dollar plays.
“With the potential sale of non-core assets, Evergreen has room to raise dividends substantially over the next two years,” it said.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Upmaster
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Posted by Upmaster > 2015-07-13 09:12 | Report Abuse
hold till rm2