JPMorgan downgrades IJM Corp stock to Neutral on limited upside

Published 19/08/2025, 05:26
JPMorgan downgrades IJM Corp stock to Neutral on limited upside

Investing.com - JPMorgan downgraded IJM Corp Bhd (KLSE:IJM) from Overweight to Neutral with a price target of MYR3.00, citing limited upside potential following recent share price gains.

The downgrade comes after IJM secured a RM1.4 billion Johor data center contract, which JPMorgan described as a "milestone" that strengthens the company’s orderbook visibility.

Despite the significant contract win, JPMorgan noted that the project’s profit before tax margin is "likely to be at the lower end of the industry given the competitive intensity."

The research firm also highlighted potential limitations in securing additional major contracts, stating that the data center’s fast-track 13-month delivery schedule "could limit the scope for executing another major win within FY26."

JPMorgan’s MYR3.00 price target is based on a sum-of-the-parts valuation of IJM’s construction, property, manufacturing, and infrastructure businesses, implying an 18x price-to-earnings ratio on the company’s FY27 estimated earnings.

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