KUALA LUMPUR (Mar 29): CIMB IB Research has maintained its “Add” rating on Sapura Energy Bhd (SAPE) at 50 sen with a higher target price of 89 sen (from 80 sen) and said the company’s FY1/18 core net loss of RM311 million was 18% lower than house forecast, due to operating and head office cost savings, but 43% more than consensus.

In a note today, the research house said while outperforming house estimates, the low base augmented the percentage swing.

“SAPE highlighted independent forecasts for offshore capex to rise above FY18 levels by FY21F, suggesting that two years’ patience will be needed for a full recovery.

“Maintain Add with higher SOP-based 89 sen target price; re-rating catalysts include additional contract wins, the development of SK408, and the E&P arm’s listing,” it said.