Bursa Alert
Global Market
NewsKenanga Research raises SK Petro’s FV to RM2.799 (5218)
Page 1 of 1
Kenanga Research raises SK Petro’s FV to RM2.799 (5218)
by hlk Thu 26 Jul 2012, 10:36
KUALA LUMPUR: Kenanga Investment Research has raised the fair value for SapuraKencana Petroleum to RM2.79 from RM2.51.
It said on Thursday the recent run-up in SKPetro's share price signaled that investors viewed the company as the main beneficiary for domestic contract awards that are rumoured to be up for tender in the coming months.
“In our view, the positive interest will continue given that the stock could likely enter the FBM KLCI index by early December,” it said.
Kenanga Research said it was maintaining its FY13-14 earnings estimates, while awaiting the company's Q2, FY12 results for a better visibility of its merger synergies.
“We have tactically increased our PER target for the stock to 20 times (from 18 times previously), lifting our fair value for the stock to RM2.79 (previously RM2.51),” it said.
The research house believe the revised PER was not a stretch for SKPetro, given that some domestic oil and gas counters have historically been able to reach trading PERs of 30 times to 40 times.
“We continue to favour the company for its scale and existing global track record, which will enhance its competitive edge during new contract bids,” said Kenanga Research.
It said on Thursday the recent run-up in SKPetro's share price signaled that investors viewed the company as the main beneficiary for domestic contract awards that are rumoured to be up for tender in the coming months.
“In our view, the positive interest will continue given that the stock could likely enter the FBM KLCI index by early December,” it said.
Kenanga Research said it was maintaining its FY13-14 earnings estimates, while awaiting the company's Q2, FY12 results for a better visibility of its merger synergies.
“We have tactically increased our PER target for the stock to 20 times (from 18 times previously), lifting our fair value for the stock to RM2.79 (previously RM2.51),” it said.
The research house believe the revised PER was not a stretch for SKPetro, given that some domestic oil and gas counters have historically been able to reach trading PERs of 30 times to 40 times.
“We continue to favour the company for its scale and existing global track record, which will enhance its competitive edge during new contract bids,” said Kenanga Research.
hlk- Moderator
- Posts : 19013 Credits : 45112 Reputation : 1120
Join date : 2009-11-14
Location : Malaysia
Similar topics» SK Petro slips in active trade (5218)
» Kenanga Research raises AMMB Holdings' target price to RM8.45 from RM7.90
» Kenanga Research upgrades IOI Corp to Outperform, raises target price
» Kenanga Research upgrades MAS to Market Perform, raises target price
» Kenanga IB Research maintains Outperform on Pestech, raises target price to RM7.27
» Kenanga Research raises AMMB Holdings' target price to RM8.45 from RM7.90
» Kenanga Research upgrades IOI Corp to Outperform, raises target price
» Kenanga Research upgrades MAS to Market Perform, raises target price
» Kenanga IB Research maintains Outperform on Pestech, raises target price to RM7.27
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum|
|
|