Swiber Holdings: OCBC maintains Hold but raises TP to $.75, on back of latest contracts. Note that the undisclosed customer is likely to be PEMEX, and work entails the procurement, transportation and installation of pipeline. As this is a new market for Swiber, it is prudent to factor in contingencies for the group.
However, there are unlikely to be major hiccups as Swiber Conquest has a good track record of pipe-laying and the waters where it will be executing the work is relatively shallow. Meanwhile, expect more contract wins for Swiber but this also means more funds would be needed for working capital. Maintain HOLD due to limited upside potential.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment