The number of active U.S. oil rigs fell to 332 last week, the least since November 2009, according to Baker Hughes Inc.
“Although UMW-OG is planning to buy ICON at 0.82 times P/BV, we are valuing the business at only 0.6 times as the sector is trading at an average P/BV of only 0.4 times. Our DCF analysis of Orkim yields a valuation of RM447mil, lower than the cash acquisition price of RM495mil.
"The net result is a lower cum-rights target price of 80 sen,” said CIMB Research.
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