0728 GMT [Dow Jones] STOCK CALL: AmResearch raises Proton Holdings (5304.KU) fair value to MYR4.80 from MYR3.89 based on 0.8X adjusted NTA from 0.7X previously to reflect increasing prospects of strategic structural improvements and positive news flow ahead. Says local auto industry has shown signs of bottoming, views as strategic period for foreign car makers to come into picture. Says believes Proton's search for partner still ongoing, with talks initiated since late 2008. "While we do not rule out further talks with VW (VOW.XE), we think the negotiating table is too lopsided to lean favorably toward Proton. Rather, we think talks will involve smaller European car makers with minimal manufacturing, market & R&D exposure in Asia, leading us to believe Renault is a likely suitor." Keeps at Buy. Adds, stock trading at depressed valuations, tips upside surprise should partnership materialize. Shares +0.8% at MYR3.74.
Dow Jones Newswires
September 11, 2009 03:28 ET (07:28 GMT)
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