KUALA LUMPUR: OSK Research sees limited upside for Bandar Raya Developments Bhd (BDRB) currently, despite the recent proposed joint venture with Multi-Purpose Holdings Bhd (MPHB), as it is now trading rather close to its CY10 target price of RM1.83

The target was set during the research house’s last trading buy call on July 9, 2010. Given the limited upside for now, OSK Research said on Wednesday, July 14 it was downgrading the stock to a Neutral, with an unchanged CY10 target price of RM1.83, based on 0.52 times CY10 P/NTA.

BDRB announced on Tuesday it would team up with MPHB to jointly develop parcels of land in Penang (80 acres), Rawang (266.7 acres) and Gombak (324 acre).

BRDB has six months from the date of the MoUs, or such longer period as the parties shall mutually agree upon, to conduct a feasibility study on all the proposed development projects.

“As the current agreements are still at the MoU stage and the details on the developments and landbank are still sketchy at this juncture, we are not imputing any of this into our forecasts. That said, should the agreements go through, this will enable BRDB to venture into the Penang market as well as to expand its presence in the Klang Valley,” it said in its research note.