Kenanga Research is retaining its underperform for Bumi Armada with a target price of 18 sen due to its high gearing and that significant cash raising is still necessary.
Bumi Armada Bhd
’s tight liquidity situation is seen as a setback for the company in expanding its business and taking on new contracts.
Despite better-than-anticipated earnings for the first quarter ended March 31, 2019 as well as internal cost initiatives that are bearing fruit, the company’s high gearing of 2.7 times remains a concern.
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