Tuesday, September 6, 2011

Affin Research downgrades KNM, Bumi Armada

KUALA LUMPUR: Affin Investment Bank Research is downgrading KNM GROUP BHD [] to Sell from Reduce with a lower target price of RM1.05 from RM1.32.

The research house said on Tuesday, Sept 6 the lower target price was based on its 20% to 41% FY11-13 earnings cuts in view of the challenging operating environment, weak and volatile profit margin trend.

Affin Research also downgraded Bumi Armada to ADD (from BUY) with an unchanged TP of RM3.78 following its strong share price performance.

It also rolled over Petronas Chemicals' valuation window to CY12 and lowered TP to RM7.50 (from RM8.70) based on 15x CY12 earnings (from 19x CY11 earnings).

The research house also cut Perdana Petroleum's FY11-13E EPS forecast by 14%-46% and lowered its TP to RM1.09 (based on 1x FY11E book value) from RM1.32 (1.2x FY11E book value).

As for Petra Energy, it reduced the TP to RM1.80 (from RM1.89) following a 2%-13% cut in its FY11-13 EPS forecast.

No comments:

Post a Comment