Analysts stay cautious over Velesto's 'inflated' share price

KUALA LUMPUR: Analysts maintain a cautious view over Velesto Energy Bhd's prospects given the expected margin pressure arising from potential cost inflation in the oil and gas services and equipment (OGSE) sector.

According to Kenanga Research, which has an "underperform" recommendation on the stock, the catalysts for the company, such as a rebound in rig fleet utilisation and daily charter rates (DCR), have already played out.