EU and US could reach trade deal this weekend - Reuters
Investing.com - Nomura/Instinet downgraded Gamuda Bhd (KLSE:GAMUDA) (OTC:GMUAF) from Buy to Neutral while maintaining a price target of MYR5.20.
The downgrade comes amid uncertainty surrounding artificial intelligence data center contracts, which have been a key growth narrative for the Malaysian infrastructure company since 2024.
Nomura analyst Tushar Mohata noted that while data center contracts currently make up only 7% of Gamuda’s orderbook, the firm had expected this segment to grow significantly through upcoming contract awards.
The investment bank expressed concerns about potential US restrictions that could affect hyperscalers’ buildout plans in Malaysia, though it made no changes to Gamuda’s orderbook or earnings forecasts.
With Gamuda’s stock trading just 2% below Nomura’s unchanged target price, the firm recommended investors lock in profits and wait for regulatory clarity before reconsidering the position.
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