Wednesday, September 7, 2011

Maybank IB Research retains Hold on Alam Maritim

KUALA LUMPUR: Maybank Investment Bank Research sees headwinds remaining for Alam Maritim and retained its Hold call on with a target price of 85 sen.

It said on Wednesday, Sept 7 that Alam Maritim's success in securing RM220 million of offshore vessels (OSV) contracts was a positive factor.

Maybank Research said that OSV hiring was gaining momentum, reflecting the improving prospects for local-flagged vessels in tandem with the intensification of Petronas' capex programmes.

'However, Alam's fleet growth remains constrained by its stretched balance sheet, impeding its earnings potential. Maintain Hold with a 85 sen target price, pegged to 9.0 times 2012 EPS,' it said.

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