Stockbroking research houses are generally upbeat over Sime Darby's fortunes henceforth now that full provisions have been

made for losses in its energy and utility division, with some revising upwards their target price for the conglomerate which has been hogging the limelight for all the wrong reasons of late.

OSK Research, which recommended an upgrade of Sime Darby from sell to neutral, has raised its target price to RM8.09 from RM6.74.

The heavyweight counter is currently trading 11 sen higher at RM8.03, up 15 sen from yesterday's closing on Bursa Malaysia.

NONE Sime Darby, which announced a fourth quarter net loss of RM77.35 million yesterday, has set aside provisions to the tune of RM2.08 billion for FY2010.

MIDF Research reiterated its neutral recommendation on the stock with a target price of RM8.40.

Kenanga Research upgraded its call to a trading buy from sell, saying the better financial numbers going forth should help lift investor sentiment.

It adjusted its target price to RM8.66 from RM7.90.

Kenanga cautioned that further work delay provisions for its projects in Qatar could not be ruled out at the moment although provisions made should be sufficient based on management's guidance.

In maintaining a hold recommendation in Sime Darby with a target price of RM7.75, ECM Libra said that the worst should be over for the conglomerate.

"Its ironic when we look back upon the Synergy Drive merger that was, and did (until 2009), reap synergistic benefits of RM600 million to the group, the write down that the company made in FY2010 has more than erased any gains from the merger," ECM Libra said.

As such, given the new move for the group's divisions to operate in a more silo or separate basis, a de-merger should be on the cards for Sime Darby, it said.

- Bernama