We like Perisai for several reasons 1) This under-researched stock is underappreciated. 2) The company is set to benefit from opportunities in the deepwater transport & installation segment. 3) Skilled new management is firmly in place and is backed by Ezra’s operational strength.
Gone are the days of corrosion control and earnings volatility as the company is now streamlined with a focus on vessel chartering. Our initiation is timely given Perisai’s recent clinching of a Petronas licence and ongoing acquisition of a vessel operator.
We begin coverage with an OUTPERFORM call and a target price of RM0.80, which implies 38% potential upside. Our target price is pegged to our target market P/E of 14.5x. The potential re-rating catalysts are 1) a growing fleet of strategic assets, and 2) success in new markets.
Gone are the days of corrosion control and earnings volatility as the company is now streamlined with a focus on vessel chartering. Our initiation is timely given Perisai’s recent clinching of a Petronas licence and ongoing acquisition of a vessel operator.
We begin coverage with an OUTPERFORM call and a target price of RM0.80, which implies 38% potential upside. Our target price is pegged to our target market P/E of 14.5x. The potential re-rating catalysts are 1) a growing fleet of strategic assets, and 2) success in new markets.
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