Maybank IB Research has lowered its target price for SapuraKencana Petroleum Bhd (SapKen) to RM1.60 from RM2 previously on dimmer operating prospects of its drilling and engineering and construction (E&C) divisions going forward.
In a note today, the research house said that its financial year 2017 (FY17) net profit forecast of RM108mil is significantly below consensus estimates of RM837mil.
In spite of the lowered target price, Maybank IB is maintaining its 'hold' recommendation for the stock.
“The underlying weakness in the drilling division is largely due to significantly lower activities and weakness in daily charter rates (DCRs). Of the five rigs stacked since the fourth quarter of last year (4QFY16), three units are expected to be off-hire for the next 18 months and two units may only see charters in 3QFY17,” it says.
For Free Signals and other KLSE online updates, click here OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
In a note today, the research house said that its financial year 2017 (FY17) net profit forecast of RM108mil is significantly below consensus estimates of RM837mil.
In spite of the lowered target price, Maybank IB is maintaining its 'hold' recommendation for the stock.
“The underlying weakness in the drilling division is largely due to significantly lower activities and weakness in daily charter rates (DCRs). Of the five rigs stacked since the fourth quarter of last year (4QFY16), three units are expected to be off-hire for the next 18 months and two units may only see charters in 3QFY17,” it says.
For Free Signals and other KLSE online updates, click here OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
No comments:
Post a Comment