Midas: Daiwa initiates coverage on the Chinese railway equipment sector with a Neutral rating, citing it is too late to join the party. Noted that the sector’s revenue-growth prospects are largely priced in coupled with high valuations & near all-time-high share prices. However, maintains a Buy rating for Midas with a price target of $1.25 as it supplies the high-speed rail & metro rail & trades at more attractive valuations than its peers. Stock trades at 20x P/E.
Most brokers have Buy call with avg target price of $1.21.
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