UMW (4588) : HLIB Research maintains Hold on UMW, lowers target price to RM11.30
KUALA LUMPUR (Dec 11):Hong Leong IB Research (HLIB) has maintained its “Hold” rating on UMW Holdings Bhd with a lower target price of RM10.86 (from RM11.30) and said due to the significant slump in crude oil price (WTI @ US$61/bbl; Brent @ US$64/bbl), Petronas had decided to cut 2015 capex by 15-20%.
In a note Thursday, the research house said given the weak near term oil abd gas outlook, it had downgraded the overall P/E valuation for O&G sector.
“HLIB has cut the targeted P/E valuation for UMW Oil & Gas Corporation Bhd to 14x (from 16x) with lower target price of RM2.47 (from RM2.90), given the concern on potential drop in charter rates and uncertainty of the contract renewals.
“Subsequently, we cut our target price of UMW to RM10.86 (from RM11.30) based on SOP,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Dec 11):Hong Leong IB Research (HLIB) has maintained its “Hold” rating on UMW Holdings Bhd with a lower target price of RM10.86 (from RM11.30) and said due to the significant slump in crude oil price (WTI @ US$61/bbl; Brent @ US$64/bbl), Petronas had decided to cut 2015 capex by 15-20%.
In a note Thursday, the research house said given the weak near term oil abd gas outlook, it had downgraded the overall P/E valuation for O&G sector.
“HLIB has cut the targeted P/E valuation for UMW Oil & Gas Corporation Bhd to 14x (from 16x) with lower target price of RM2.47 (from RM2.90), given the concern on potential drop in charter rates and uncertainty of the contract renewals.
“Subsequently, we cut our target price of UMW to RM10.86 (from RM11.30) based on SOP,” it said.
http://www.theedgemarkets.com
