Singapore Stock Market News

Pacific Radiance - Ride the waves

StockFanatic
Publish date: Mon, 16 Jun 2014, 02:04 PM
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We are initiating coverage on Pacific Radiance with a Buy recommendation and 1-year price target of $1.55, based on 11x FY15 P/E.

Despite the stock outperformance YTD, we believe there is still room for capital appreciation as the group aims to deliver superior earnings growth, driven mainly by

i) continued expansion in its fleet as it scales up operations in key emerging markets such as South East Asia, Latin America and Africa, to capture opportunities in these high growth markets as well as

ii) strong demand for its offshore vessels to drive utilisation and charter rates.

Coupled with quick deployment of newbuilds upon delivery, this could potentially lead to sustainable high margins.
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