Monday, July 4, 2011

Sarin Technologies rated 'buy' by Kim Eng

Stock Name: Sarin
Company Name: SARIN TECHNOLOGIES LTD
Research House: Kim EngPrice Call: BUYTarget Price: 1.38



Kim Eng Research in a June 29 research report says: "Following our initiation report, Sarin's share price has shot past our previous target price of 91 cents within a month. We were conservative in our valuation considering the illiquidity of the stock prior to our coverage.

"We had postulated that Sarin could be a $3.26 per share stock in more than five years. With these positive developments, this target could be achieved earlier than imagined. Our net profit forecasts for FY2011-2013F are revised upwards by 3-11%.

"We have also reviewed our valuation multiple and believe that Sarin deserves a higher premium as its growth momentum starts to gain traction. Our target price is consequently increased to $1.38, based on 16x PER on revised FY12F EPS. MAINTAIN BUY."

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