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Buy Aban Offshore, tgt Rs 5330: Emkay
Emkay report has maintained buy rating on Aban Offshore with taret price of Rs 5330. We believe that offshore oilfield service’s industry fundamentals remain compelling and Aban is the best play to drive the strong demand for offshore rigs and continued uptrend in day rates.
Emkay report has maintained buy rating on Aban Offshore with taret price of Rs 5330, in its June 23, 20087 report. "With 35% of its revenues expected to be derived from deepwater segment in FY2009 we believe that Aban offshore is likely to be beneficiary of this uptrend in day rates for deepwater assets. Also Aban has one deepwater semisubmersible rig, Bulford Dolphin, currently under refurbishment to get contracted. We expect this rig to fetch very handsome day rate. We believe that offshore oilfield service's industry fundamentals remain compelling and Aban is the best play to drive the strong demand for offshore rigs and continued uptrend in day rates. Aban is currently trading at 8.4X its FY2009 earnings and 5.9X its FY2010 earnings. We maintain our Buy recommendation on the stock with a revised price target of Rs 5330. Our price target is based on 10X Aban's FY2010 EPS of Rs 533" according to Emkay report.
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