WILL THIS FOLLOW LIKE MUDAJAYA TREND AFTER CIMB UPGRADE MUDAJAYA UP LIKE MAD.
Written by Joseph Chin
Tuesday, 08 September 2009 10:32
KUALA LUMPUR: CIMB Equities Research is maintaining its Outperform recommendation on SapuraCrest Petroleum at RM1.68 with a target price of RM2.56 as it expected a several positive news in the company's second quarter results due this week.
The research house said on Sept 8 the 2Q results were expected to be commendable and in line with its forecast, with a net profit of at least RM35 million (up 35% quarter-on-quarter and up 10% year-on-year).
The main catalysts are higher drilling charter rates, improved associate contribution and a new Shell contract.
CIMB Equities Research said winners of the five-package, RM3 billion transport and installation contract may be announced in October instead of November. Supported by in-house pipelay barges, SapuraCrest is gunning for all five packages.
"Although we maintain our forecasts and target basis of 15 times price-to-earnings (P/E), our target price rises from RM2.07 to RM2.56 as we roll it a year forward to end-CY10.
"SapuraCrest remains firmly an Outperform, with the potential re-rating catalysts being new contract wins, sccess in new markets, and a growing fleet of strategic assets," it said.