KUALA LUMPUR (May 4): CIMB Research has maintained its neutral rating on PUNCAK NIAGA HOLDINGS BHD [] with a target price of RM1.45 and said the spotlight returns to Puncak’s oil & gas prospects as it has reportedly been shortlisted for Petronas’s marginal oilfield contracts.
While this should renew interest in the stock, more upside hinges on the takeover moves in Selangor, the research house said in note Friday.
“We retain our target price basis of 60% SOP discount. There are limited details on the rollout of Petronas’s contracts and Puncak’s potential exposure.
“We also see no signs of a new takeover move on Selangor water assets in the medium term. We reiterate our Neutral rating,” it said.
While this should renew interest in the stock, more upside hinges on the takeover moves in Selangor, the research house said in note Friday.
“We retain our target price basis of 60% SOP discount. There are limited details on the rollout of Petronas’s contracts and Puncak’s potential exposure.
“We also see no signs of a new takeover move on Selangor water assets in the medium term. We reiterate our Neutral rating,” it said.
