Tuesday, March 8, 2011

Kim Eng upgrades Hyflux to Buy from Sell

Stock Name: Hyflux
Company Name: HYFLUX LTD
Research House: Kim Eng

Kim Eng upgrades Hyflux (600.SG) to Buy from Sell and raises its target price to $2.10 from $1.59.  It says the total project value of the Tuas desalination plant, which Hyflux won Monday, of $890 million “will go a long way towards maintaining the company's orderbook visibility over the next 2-3 years.” 

The house expects the project to contribute to revenue mostly in 2012/2013. “The award is a testament to Hyflux’s expertise in this area, which should continue to spell opportunities globally for the group.” 
Kim eng raises its earnings estimates by 10%-15%. Shares are +11.5% at $2.04.

No comments:

Post a Comment