OCBC has overhauled PACC Offshore Services Holdings (POSH) from "offer" to "hold", with a higher reasonable esteem gauge of 33.5 pennies.
In a Wednesday report, lead examiner Low Pei Han says this is on the grounds that POSH's stock cost has declined around 7%, and is currently nearer to OCBC's reasonable esteem assess since minimizing the counter to "offer" on Feb 22.
Noticing that offshore and marine (O&M) organizations have been experiencing an intense time since the oil value crash in 3Q14, Low trusts POSH is still in a generally better position among the related stocks under OCBC's scope, with positive working money streams of US$38.2 million ($53.6 million) in FY16 and US$69.6 million in FY15.
She includes that the gathering has likewise been appreciating great relations with its banks notwithstanding its net equipping of 1x in FY16, because of non-money weaknesses which diminished value.
"Other than keeping a solid accounting report to remain above water amid these indeterminate circumstances, it is additionally critical to do as such as oil majors are probably going to exclude bidders with frail financials," says the investigator.
In the interim, Low says POSH's capacity to secure contracts for its vessels from the Middle East is another positive given that the district is as yet observing great movement, however, this additionally implies the zone is seeing a developing supply of seaward bolster vessels (OSVs) with the landing of new tonnage from different areas.
"It is vital that the supply development does not exceed the interest for OSVs," she alerts.
As at 11.19am, shares of POSH are exchanging level at 35 pennies.
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