Stock Name: PERISAI
Company Name: PERISAI PETROLEUM TEKNOLOGI
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research has initiated coverage of Perisai Petroleum Bhd with a BUY call and a target price of 80 sen, which implies 38% potential upside.
It said on Tuesday, March 8 its target price is pegged to its target market P/E of 14.5 times. The potential re-rating catalysts are a growing fleet of strategic assets, and success in new markets.
'We like Perisai for several reasons. This under-researched stock is underappreciated; the company is set to benefit from opportunities in the deepwater transport & installation segment while a skilled new management is firmly in place and is backed by Ezra's operational strength,' it said.
CIMB Research said gone are the days of corrosion control and earnings volatility as the company is now streamlined with a focus on vessel chartering.
'Our initiation is timely given Perisai's recent clinching of a Petronas licence and ongoing acquisition of a vessel operator,' it said.
Company Name: PERISAI PETROLEUM TEKNOLOGI
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research has initiated coverage of Perisai Petroleum Bhd with a BUY call and a target price of 80 sen, which implies 38% potential upside.
It said on Tuesday, March 8 its target price is pegged to its target market P/E of 14.5 times. The potential re-rating catalysts are a growing fleet of strategic assets, and success in new markets.
'We like Perisai for several reasons. This under-researched stock is underappreciated; the company is set to benefit from opportunities in the deepwater transport & installation segment while a skilled new management is firmly in place and is backed by Ezra's operational strength,' it said.
CIMB Research said gone are the days of corrosion control and earnings volatility as the company is now streamlined with a focus on vessel chartering.
'Our initiation is timely given Perisai's recent clinching of a Petronas licence and ongoing acquisition of a vessel operator,' it said.
RM1.00 is possible in medium term say by June 2011 given the strong backing from Ezra and its MD who has proven track record in the same industry.
ReplyDeleteThe major shareholder Ezra Holdings' first entry cost for its 20% stake was 49 sen one year ago. It also granted an option to Perisai's new MD to buy over half of the stake within 2 years at its entry price. Recently it injected a profitable business concern into Perisai in exchange for additional new Perisai's shares pegged at 64 sen. So, if the upside potential is 80 sen only, then it will be a so-so investment for Ezra. :-)
ReplyDeleteMarch 19, 2011 11:57 AM
Anonymous said...
Wah! If the MD does not work harder so as to double or triple the share price within the next few months amid the global uncertainties, he is basically forgoing a golden opportunity for himself as well as investors like all of us. hahaha..... we all must act now before too late....
Value Seeker
March 20, 2011 11:29 AM
Anonymous said...
Hahaha! Logical analysis.
Both Ezra and the MD will likely to strive hard to value add the company in order to enhance their investment of time and money in this company.
It is therefore probable for this counter to hit even, say, RM1.50 when it secures the right deals or projects in the near future. Such quantum of appreciation is not uncommon for O & G related counters.
Let's see.
Long Term Investor.
March 22, 2011 8:39 PM
Agreed as the MD was granted by the major shareholder Ezra an option to buy 1/2 of the latter's stake within 2 years at Ezra's entry cost. There must be the possibilities that MD is extremely capable to bring the company to much greater heights to secure such a carrot.
ReplyDeleteWow! It seemed that it would have something in the pipeline based on the share movement in the last few days...... O & G glory days are coming back???
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