Analysts Lift Gamuda Earnings Forecasts On Stronger Job Wins

KUALA LUMPUR, Sept 7 (Bernama) -- Public Investment Bank Bhd (PIVB) has raised Gamuda Bhd’s financial year 2026 (FY2026) order book replenishment assumption to RM30 billion and lifted their FYs 2027-2028 earnings forecasts by an average of 5.3 per cent.

In a research note today, PIVB said Gamuda’s subsidiary Riverside Link Consortium was awarded the Sydney Metro West, Parramatta integrated station development project by Sydney Metro on Sept 3, 2026.

The project includes design and construct contract valued at US$880 million or RM2.54 billion for the Parramatta metro station and associated infrastructure, with Gamuda holding an 80 per cent effective participation, alongside development rights for adjacent commercial, retail, and residential buildings.

Based on Gamuda’s 80 per cent stake, PIVB said its attributable share is estimated at about RM2 billion. With this new contract, the group’s total outstanding order book is estimated at RM61.6 billion.

“This marks Gamuda’s sixth station delivery for Sydney Metro, reinforcing its track record in Australia and combining its infrastructure and property development capabilities in an integrated transport-oriented development model,” it added.

PIVB reiterated its “outperform” call on Gamuda, with a higher sum-of-the-parts-based target price (TP) of RM5.80 from RM5.60 previously.

Meanwhile, another investment bank RHB Investment Bank Bhd kept its “Buy” recommendation with a TP of RM6.20 from RM6.02 earlier for Gamuda.

It revised Gamuda’s FY2027 new job wins target to RM25 billion from RM20 billion with the bulk of the additional RM5 billion assumed to be recognised towards later FY2027 and FY2028.

“As a result, we increase our FYs 2027 and 2028 forecast earnings by four per cent and six per cent and arrive at an some of parts-derived TP of RM6.20,” it said.

As at 10.50 am, Gamuda’s share price was 2 sen lower to RM4.60 with 1.96 million shares traded.

-- BERNAMA