CIMB Research raised its rating on Singapore’s CSE Global, a systems integrator for the global oil industry, to outperform from neutral and kept its target price, citing its current share price as an attractive level to buy the stock.
“We deem that the current trading price provides a good entry point to this quality company,” CIMB said in a report.
It said CSE Global is trading at 7 times its 12-month forward price-to-earnings, compared to a 5-year mean of 11 times.
The broker expects CSE to post first-quarter net profit of $14 million, up 11% from a year ago. Stronger-than-expected results and order wins could lead to a re-rating of CSE Global, it said.
By 9:09 a.m., CSE Global shares were up 1.9% at $0.80, and have gained 6.7% since the start of the year.
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