Gamuda valuations have run ahead of fundamentals, says AmInvestment

KUALA LUMPUR: AmInvestment Bank research has maintained its underweight call and forecasts on Gamuda Bhd following the government's Budget 2020 announcement, which yielded no positive surprises.

"We maintain our view that valuations of construction stocks, Gamuda included, have run ahead of their fundamentals in the heat of the euphoria sparked by the recent revival of the East Coast Rail Link (ECRL) and Bandar Malaysia projects (more so, Gamuda may not even participate in the ECRL project after all)," it said in a note.