HSBC Research has Buy on Bumi Armada, TP 52 sen

However, Hong Leong Investment Bank Research has a Hold and TP of 35 sen, Maybank Investment Bank Research and UOB Kay Hian Malaysia Research a Sell and TP of 11 sen and 10 sen.

KUALA LUMPUR: HSBC Research has a Buy recommendation on Bumi Armada with a target price of 52 sen.

At midday on Friday, shares of the international offshore oilfield services provider was unchanged at 22 sen.

It was the most active with 147 million shares done.

Bumi Armada's shares rebounded over the past week after CIMB Equities Research retained its Buy call with an Add and target price of 70 sen.

The shares had bounced from a record low of 15.5 sen on Jan 16, a day before CIMB Research issued the report.

CIMB Research said in itsresearch note that the company expected its pending US$380mil loans to be refinanced.

It retained its Add recommendation for Bumi Armada with an unchanged sum-of-parts based target price of 70 sen with the key rerating catalyst being closure in the refinancing negotiations.

Bumi Armada's difficult debt refinancing talks with banks are still ongoing; “we reckon that the probability of banks calling a default is low”, the researc house said.

It said other positives include the potential to secure a new subsea contract at the Caspian Sea, and the outcome of the Australian court hearing by May 2019F.

CIMB Research said Bumi Armada continues to negotiate for an extension to the May 2019F repayment deadline for US$380mil worth of corporate term loans with a consortium of banks. 

These loans were originally taken to fund the acquisition of Offshore Support Vessels (OSV) and to repay the project financing of the prematurely-terminated Armada Claire FPSO contract. 

However, Hong Leong Investment Bank Research has a Hold and TP of 35 sen, Maybank Investment Bank Research and UOB Kay Hian Malaysia Research a Sell and TP of 11 sen and 10 sen.