CIMB Research advises investors to accumulate Bumi Armada, target price RM2.56

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KUALA LUMPUR (Dec 8): CIMB Research has maintained its Add rating on Bumi Armada Bhd at RM1.04 with an unchanged target price of RM2.56 after the company announced last week that its CEO and executive director Hassan Basma was relinquishing his positions from Jan 1, 2015.

However, he will continue to be engaged as a consultant to the company on specific projects.

In a note Dec 7, the research house advised investors to take advantage of the share price correction and accumulate the shares.

“Despite the leadership change and current oil price weakness, we continue to like Bumi Armada’s long-term fundamentals, anchored by its firm order book of RM21.8 billion, excluding the 10-year US$1.18 billion Madura contract and extension options worth RM11.8 billion.

“The company is currently bidding for four FPSO projects - one each in Ghana, Nigeria, Namibia and Angola,” it said.