PublicInvest Research keeps Neutral on Prestariang, cuts target price to RM1.62
PRESBHD (5204) PRESTARIANG BERHAD
KUALA LUMPUR (Nov 4): PublicInvest Research has maintained its Neutral rating on Prestrariang Bhd at RM1.67 with a lower target price of RM1.62 (from RM1.81) after Prestariang announced yesterday that it had inked an MOU with MIE Corp Holdings S/B to set up a joint-venture company for the supply of manpower to Malaysia’s Oil & Gas (O&G) industry, particularly for the RAPID project in Johor.
In a note Tuesday, the research house said it lauded the move as it will not only create career placement for its O&G downstream students, it will also help generate ancillary income for the company in the future.
“We reduce our TP from RM1.81 to RM1.62 however, after adjusting for our lowered FY14-16 earnings forecasts due to the delay in replenishing its existing contracts and the longer period taken to turn around its education arm.
“Our Neutral call remains unchanged,” it said.
http://www.theedgemarkets.com
PRESBHD (5204) PRESTARIANG BERHAD
KUALA LUMPUR (Nov 4): PublicInvest Research has maintained its Neutral rating on Prestrariang Bhd at RM1.67 with a lower target price of RM1.62 (from RM1.81) after Prestariang announced yesterday that it had inked an MOU with MIE Corp Holdings S/B to set up a joint-venture company for the supply of manpower to Malaysia’s Oil & Gas (O&G) industry, particularly for the RAPID project in Johor.
In a note Tuesday, the research house said it lauded the move as it will not only create career placement for its O&G downstream students, it will also help generate ancillary income for the company in the future.
“We reduce our TP from RM1.81 to RM1.62 however, after adjusting for our lowered FY14-16 earnings forecasts due to the delay in replenishing its existing contracts and the longer period taken to turn around its education arm.
“Our Neutral call remains unchanged,” it said.
http://www.theedgemarkets.com
