KUALALUMPUR (April 17): CIMB Research has maintained it Outperform rating on Bumi Armada Bhd at RM4.45 with a target price of RM4.80 and said things were going swimmingly for Bumi in Russia where it has clinched a US$200m pipe installation contract from Lukoil.
In a note April 17, the research house said the contract would maximise the utilisation of its Armada Installer derrick pipelay barge, which is servicing a Petronas contract, also in the Caspian Sea.
“We continue to value the stock at 18.2x CY13 P/E, 40% premium over our target market P/E.
“Bumi’s RM7.6 billion order book and four anticipated FPSO contract wins support our forecast of record net profits in FY12-14 and 31.7% 3-year EPS CAGR. Maintain Outperform.
In a note April 17, the research house said the contract would maximise the utilisation of its Armada Installer derrick pipelay barge, which is servicing a Petronas contract, also in the Caspian Sea.
“We continue to value the stock at 18.2x CY13 P/E, 40% premium over our target market P/E.
“Bumi’s RM7.6 billion order book and four anticipated FPSO contract wins support our forecast of record net profits in FY12-14 and 31.7% 3-year EPS CAGR. Maintain Outperform.
