Kencana is OSK 'only pick in O&G sector (BT)

OSK Research has maintained a "buy" on Kencana Petroleum with a target price of RM2.93.

This stock remains "our only pick in the O&G sector for now. We believe the good 1QFY11 results represent the beginning of the good tidings in store for the stock".

The next thing to do is for investors to be on the lookout for: i) the announcement of fabrication contracts worth about RM300 million; ii) a portion of the hook-up and commissioning contract worth RM1.5 billion; iii) potentially moving up the value chain and into areas such as oil field management etc, and iv) potential tie-up with McDermott to fabricate deepwater platforms.