 |
| The Edge FD Top Pick 2017 |
The deal is expected to start a cyclical recovery for the O&G sector and SapuraKencana is viewed as a good proxy to ride on the gradual recovery of the sector. Several research houses have upgraded their call on the O&G sector recently, after Opec and non-Opec members pledged to cut production.
Chosen as one of the stock picks for 2017 by Public Investment Bank Research, the research house said the worst is likely behind for SapuraKencana.
Given its ability to undertake comprehensive scope of works across the O&G suite, SapuraKencana is said to stand in a better position against its peers on expected recovery in O&G activities.
Maybank IB Research has pointed out that SapuraKencana is a proxy to a rising oil price play and monetising its gas assets is a major catalyst. The counter is one of its key buys in the sector.
Kenanga Research has recently upgraded SapuraKencana to an “outperform” call with a target price of RM1.88, following the rerating on the selective upstream players in view of the sustainability of oil prices above US$50 (RM236) per barrel.
Bloomberg data shows that there are five research houses with a “buy” call on the stock, and 12 with a “hold” call.
Recall that the counter fell by nearly 20% in 2016 and has plummeted by almost 63% in the last three years. — By Yimie Yong
Source: http://www.theedgemarkets.com/my/article/top-10-stock-picks-2017
No comments:
Post a Comment