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Macquarie initiated coverage on CIMB Group Holdings Bhd (CIMB:MK) (OTC:CIMDF) with an outperform rating and a price target of MYR8.14, according to a research note released Tuesday.
The Malaysian banking group’s first-quarter 2025 results were negatively impacted by foreign exchange factors, Macquarie noted, but the bank’s fiscal year 2027 return on equity targets appear achievable despite current economic uncertainties.
Macquarie identified CIMB Thai as an underperformer in terms of return on equity, suggesting the unit needs operational improvements rather than capital reallocation. The research firm indicated it would monitor developments in the company’s hire purchase book.
The investment bank highlighted that CIMB Group is trading at a 5% discount to its bear case price while offering an 8.5% forward dividend yield, positioning the stock as Macquarie’s second-highest recommendation in its coverage universe.
CIMB Group Holdings is one of Southeast Asia’s leading banking groups with operations across Malaysia, Indonesia, Thailand, Singapore, Cambodia, and Vietnam, offering a range of banking and financial services.
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