MTQ

MTQ: OSKDMG note that MTQ will announce its 2QFY14 results next Wednesday, with earnings expected to improve by 10% y-o-y. Broad trends in the coming quarters will be: i) better margins as its Bahrain unit turns profitable, ii) lower overheads as cost-cutting goes on, and iii) growing revenue and profits as drilling activities continue to rise. In view of its robust operations, deem the stock’s recent underperformance unjustified. Maintain BUY, with $2.20 TP.