MAYBANK Investment Bank (Maybank IB) has maintained a buy on Resorts World Bhd at RM2.16 with a target price of RM2.86 given that the company’s cash pile is safe for now, as it no longer equity accounts Star Cruises' books.
It said Star Cruises' results had no impact on Resorts, after its shareholdings were reduced to 19.6%.
"Earlier concerns that Resorts may have to inject cash into Star Cruises have already been discounted and thus, suggests upside potential. Resorts had a net cash of RM4.5 billion as at end-2008, which translates into 77 sen per share," it said.
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