Muhibbah assigned 'neutral' call: MIDF

MIDF Research (MIDFR) has assigned a short-term "neutral" recommendation on Muhibbah Engineering (M) Bhd at a target price of RM1.56.
It is also maintaining 12-month target price of RM1.56 for Muhibbah over the longer term.
MIDF Research, in a research note today, said that it was, however, cautious as Muhibbah may be vulnerable to negative news flow, especially given its exposure to Middle East projects.
"As 55 per cent of its RM3.6 billion order book comes from overseas, the risk of project cancellation is always present under the current economic climate, "the research firm said.

"Our concerns lies in its Middle Eastern projects, namely the Doha International Airport. Assuming the Doha project is cancelled, net profit may decline as much as 23 per cent," it said.