CIMB Equities Research expects Perisai Petroleum to post a record year for the current financial year and is maintaining its target price of RM1.53 with an Outperform recommendation.
It said on Thursday that as previewed, Perisai scorched to a new record quarter, which supported a record performance for the first half, thanks to Garuda's mobile offshore production unit (MOPU).
“At 52% of our forecast and 54% of consensus, the 1H performance was broadly in line with expectations. Expect FY12 to be a new record year,” it said.
CIMB Research continued to value the stock at its CY13 target market price-to-earnings of 13.3 times.
“Perisai remains an Outperform and our top small-cap oil & gas pick. We also retain our forecasts. This strong set of results and an aggressive fleet expansion could lead to a re-rating of the stock,” it said.
“Investors should accumulate the stock aggressively. YTD, the share price has risen 28% and trumped the FBM KLCI by 20%.
“Despite this, the stock still offers the most share price upside and undemanding FY12-14 P/Es of 8-9x. Its 3-year EPS CAGR of 96.5% is the highest in the sector and almost 5x the sector average of 19.8%,” it said.