Shares in Yoma Strategic Holdings Ltd jumped as much as 6 per cent to a three-month high of S$0.88 on Tuesday, after brokerages upgraded the property developer on upbeat business prospects in Myanmar.
"The booming property sector, accelerated construction and Landmark's progress lead us to raise FY14/15F earnings by 60 per cent/40 per cent," said DBS Vickers Securities in a note. It said its target price on Yoma to S$0.92 from S$0.80.
Yoma reported a net profit of S$11.5 million for the quarter ended March 31, up from S$2.1 million a year earlier, boosted by an increase in sales of residences and land development rights in Myanmar.
Yoma's involvement in Myanmar's telecommunication and agriculture industries could propel its share prices higher, analysts also said. The shares have risen nearly 22 per cent so far this year, beating a 6.7 per cent gain in the sector index.
OCBC Investment Research upgraded its call on the stock to"hold" from "sell", and increased the fair value estimate to S$0.87 from S$0.71.
Yoma, in partnership with Digicel and Quantum Strategic Partners, is bidding for one of the two telecommunication licenses that Myanmar is expected to be awarded later this year.