KUALA LUMPUR: CIMB Equities Research is maintaining its Buy recommendation on Alam Martim and raised the target price to RM1.50.
Alam has secured a RM220 million three+two year contract to supply an accommodation vessel and an anchor handling tug (AHT) vessel to ExxonMobil.
It said on Wednesday, Sept 7 that given the signs of a stronger recovery in 2H, it maintained its EPS forecasts, which already include this contract.
'Although we continue to value the stock at a 20% discount to our target market P/E, our target price rises from RM1.40 to RM1.50 as we roll it forward to end-CY12 and use our CY13 target market P/E of 13.4x (prev. 14.5x CY12).
'We continue to rate Alam a BUY, with the potential re-rating catalysts being 1) this announcement, 2) more pipe installation ventures, and 3) a stronger-than-expected turnaround,' it said.
Alam has secured a RM220 million three+two year contract to supply an accommodation vessel and an anchor handling tug (AHT) vessel to ExxonMobil.
It said on Wednesday, Sept 7 that given the signs of a stronger recovery in 2H, it maintained its EPS forecasts, which already include this contract.
'Although we continue to value the stock at a 20% discount to our target market P/E, our target price rises from RM1.40 to RM1.50 as we roll it forward to end-CY12 and use our CY13 target market P/E of 13.4x (prev. 14.5x CY12).
'We continue to rate Alam a BUY, with the potential re-rating catalysts being 1) this announcement, 2) more pipe installation ventures, and 3) a stronger-than-expected turnaround,' it said.
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