KUALA LUMPUR (May 29): M & A Securities has initiated coverage on Alliance Financial Group Bhd (AFG) with a Hold rating at RM4.86 and a target price of RM5.05.
In a note Thursday, the research house said AFG’s upside would be anchored by 1) growing business in the SME segment ii) OPR adjustment given sizeable variable rates loans iii) low cost of funds given its focus on growing current account – saving account (CASA).
“Rerating catalyst could
emanate from 1) lower-than-expected provision allowance 2) higher-than-expected
LDR to assist loans growth 3) faster-than-expected OPR adjustment,” it said.
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