Perdana – ‘Overweight’ call on Perdana Petroleum (BT)

Hong Leong Investment Bank has initiated coverage of Perdana Petroleum
starting the offshore marine services firm with an “overweight” call.

The bank said the firm will benefit from a pick-up in the global and domestic off-shore oil and gas sector.

“We are projecting a drastic swing from a core earnings
loss of RM28 million (in 2011) to a core earnings profit of RM24
million and RM49 million in 2012 and 2013 respectively,” it said.

The bank set a target price of RM1.50 per share.

Smartbiz: The uptrend of this counter is intact but also ripe for adjustment due to the overbought status. The tough resistance lies at 1.05. Supports are 0.985 and the 20MV which is around 0.90 now.

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