KUALA LUMPUR (Nov 4): MIDF Research has upgraded Malaysia Marine & Heavy Engineering Bhd (MMHE) to Neutral (from Sell) at RM2.27 with a lower target price of RM2.32 (from RM2.78) after the company announced two contracts worth a collective RM350 million.

In a note Tuesday, the research house said the first contract is for fabrication works on the Bergading Complex at the North Malay Basin.

It said the second contract was for the procurement, construction, hook-up and commissioning works at the Besar-A platform.

“We now believe that the stock is fairly valued after its recent massive selloff.

“Hence, we are upgrading MMHE to Neutral from Sell but at a lower target price of RM2.32,” it said.