KUALA LUMPUR (Nov 4): Shares of Gamuda Bhd (KL:GAMUDA) rose on Monday and hit another record-high close, while analysts continued to urge investors to buy the stock following another data centre contract.
Gamuda gained as much as 24 sen or nearly 3% to RM8.72, before giving up some gains. The stock closed at RM8.65 — still up 17 sen or 2% — giving the construction company a market capitalisation of over RM24.4 billion, the country’s 20th largest, with it firmly on path to FBM KLCI inclusion by year end.
The latest RM451 million contract lifts Gamuda’s contract wins since the start of its financial year in August to RM6.7 billion, CIMB Securities noted. This raises its total order book to RM31.4 billion, suggesting upside risk to its target of up to RM35 billion by December, the house said.
CIMB Securities now expects Gamuda’s share price to hit RM10.20 and joins four other houses that have target prices above RM10 for the stock, while flagging “high conviction” that the company could bag RM15 billion worth of jobs prospects over the next one to two quarters.
Shares of Gamuda have nearly doubled so far this year, tracking strong gains in the sector fuelled by optimism about the government's rollout of major infrastructure projects. The stock has also benefited from a slew of news of highly lucrative jobs to build data centres.
Analysts are still bullish on the stock, with 18 ‘buy’, only three ‘hold’ calls and no ‘sell’ ratings. The consensus 12-month target price is now RM9.48, according to Bloomberg, implying a potential return of over 10% from the current price.
TA Securities, which already has the highest target price of RM10.98, said Gamuda could still win a couple more contracts by year end.
The Penang Light Rail Transit project in particular could be finalised by the end of this month and further boost Gamuda’s order book by up to RM7 billion, TA Securities flagged. “Additionally, we anticipate more data centre contracts to be awarded soon,” the house added.
Last Friday, Gamuda announced that it had secured a RM451.4 million contract to build a data centre in Cyberjaya. Works are expected to begin by December and be completed in the first quarter of 2026, the company said.