June 23, 2010

SAPCRES - Price Target News

Stock Name: SAPCRES
Company Name: SAPURACREST PETROLEUM BHD
Research House: CIMB

KUALA LUMPUR: CIMB Equities Research said at its recent Small to Mid Cap Conference, fleet expansion ranked high on fund managers' topics of interest when it came to SapuraCrest.

It said in a research note issued on Wednesday, June 23 that key points from the briefing are:

1) A bigger fleet of drilling rigs is possible but the SapuraCrest-Seadrill JV must first secure a contract.

2) The two new shallow-water barges are ready for mobilisation and will play a major role in the execution of the RM8bn transport and installation contract.

3) Management is optimistic that the marine services business will be profitable this year.

'We maintain our earnings forecasts and target price of RM3.02, pegged to an unchanged target market P/E of 15x. SapuraCrest remains an OUTPERFORM and our top oil & gas pick.

'Factors that could catalyse the stock include 1) active order book replenishment, 2) success in new markets, and 3) a growing fleet of strategic assets,' CIMB Equities Research said.


No comments:

Post a Comment