Maintain Overweight. We believe there is more upside potential for most O&G stocks despite the recent upswing in their share prices. We also think that the days of dishing out massive contracts are back. Given the positive sentiment and potential for more news flow in the sector, we raise our PER valuation for a number of companies under coverage.
Our average PER valuation (ex Dialog) is raised from 13.2x to 16.6x. We also upgrade our calls on a number of companies including Alam Maritim, Dialog Group, Petra Perdana and Petra Energy. On the flip side, companies with rather loftier valuations have been downgraded to Trading Buys including Kencana Petroleum and MMHE. Nonetheless, Kencana Petroleum remains our top pick. Aside from Kencana, we now include Alam Maritim, Petra Perdana and Petra Energy as our other top buys.
Our average PER valuation (ex Dialog) is raised from 13.2x to 16.6x. We also upgrade our calls on a number of companies including Alam Maritim, Dialog Group, Petra Perdana and Petra Energy. On the flip side, companies with rather loftier valuations have been downgraded to Trading Buys including Kencana Petroleum and MMHE. Nonetheless, Kencana Petroleum remains our top pick. Aside from Kencana, we now include Alam Maritim, Petra Perdana and Petra Energy as our other top buys.
No comments:
Post a Comment