Gamuda's Long-Term Growth Outlook May Stay Intact — Market Talk

Gamuda's near-term earnings are expected weaken but its long-term growth prospects should remain intact, Maybank IB analyst Yin Shao Yang says in a note. He cuts Gamuda's FY 2026-2028 earnings forecasts by 8%-18% to reflect delayed contributions from Silicon Island's project, softer property earnings and slower monetization of purpose-built student accommodation assets. However, Gamuda's construction outlook could remain supported by 52.3 billion ringgit order book and a healthy pipeline from water-transfer projects, rail jobs, renewable energy developments and data centers, he adds. Maybank cuts Gamuda's target price to 5.00 ringgit from 5.30 ringgit, while maintaining a buy rating on the stock. Shares are 1.2% higher at 4.31 ringgit.(yingxian.wong@wsj.com)