KUALA LUMPUR (Dec 10): Shares of Gamuda Bhd (KL:GAMUDA) still have strong upside in the next 12 months, RHB Investment Bank (RHB IB) said on Tuesday, flagging strong earnings and more job wins ahead.

The research house raised its target price for Gamuda by RM1.15 to RM11.67, the highest among 21 covering the stock, and maintained its “buy” call. Also on Tuesday, CIMB Securities raised its target price for Gamuda by 80 sen to RM11.00.

Gamuda may win more renewable energy and rail jobs in Australia that we previously did not account much for, RHB IB said, flagging that there are about A$4 billion (RM11 billion) worth of renewable energy jobs in the pipeline that the company has been shortlisted for in Australia.

Further, Gamuda is also in the running for the Suburban Rail Loop East package, with its share estimated at around A$3 billion, as well as the Sydney Metro West stations package likely worth up to A$1.5 billion, RHB IB noted.

Shares of Gamuda have doubled year-to-date with new record highs this year, tracking strong gains in the construction sector, fuelled by optimism about the rollout of major infrastructure projects. The stock has also benefitted from a slew of news on highly-lucrative jobs to build data centres.

Despite the strong rally, analysts are still bullish on Gamuda, with 19 “buy”, two “hold”, and no “sell” calls. The consensus 12-month target price is RM9.94, according to Bloomberg, implying potential return of over 8% from its last price of RM9.19.

There are still no signs of contract wins abating for Gamuda, and the company could convert “several bolt-on job prospects” within the next one-to-two quarters, said CIMB Securities.

Apart from robust data-centre jobs in the pipeline, Gamuda could also secure additional metro railway works worth RM8.1 billion in Taiwan within three years, and the Oven Mountain Pumped Hydro Project in Queensland worth over A$1 billion by the final quarter of 2025, the house said.