We expect the market to rebound in February as fundamentals remain intact and the 4Q2010 results reporting season should see analysts upgrading their earnings again. We like the Banks, Oil & Gas and Consumption related sectors for February. Our Top Buys center on companies anticipated to display strong profitability (CIMB, AirAsia), laggards (KPJ) and rebounding stocks (Kencana, SP Setia).
The table below are the target price for February 2011 top picks.
| Stocks | Price (RM) | Target price (RM) | Market Cap (RM million) | Rating |
|---|---|---|---|---|
| CIMB Group | 8.38 | 9.77 | 62,286.7 | Buy |
| AirAsia | 2.75 | 3.78 | 7,627.4 | Buy |
| SP Setia | 6.42 | 7.23 | 6,812.6 | Buy |
| Kencana | 2.57 | 3.05 | 4,710.8 | Buy |
| KPJ Healthcare | 3.76 | 4.62 | 2,119.2 | Buy |
Source : OSK Research