Singapore Stock Market News

Pacific Radiance - Where Is The Bottom?

StockFanatic
Publish date: Fri, 12 Dec 2014, 10:06 AM
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Our sensitivity analysis of 1-year forward P/B suggests current share price has factored in Brent oil price of US$60/bbl. Share price has a strong correlation with oil prices. Should oil price fall to US$50/bbl, share price could fall another 17%. However, we see oil prices at US$40-50/bbl would likely be temporary. For investors with a longer-term view, this is an opportunity to bottom fish.

Maintain BUY. Target price: S$1.57.
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