Religare Hichens Harrison Research has upgraded its rating on Great Offshore from sell to buy with a price target of Rs 359 in its April 15, 2009 research report.
“We have raised our FY10 net revenue and PAT estimates by 9.5% and 13% respectively due to higher renegotiated contract rates for GOFF’s assets. We have valued the stock using DCF, with a risk free rate of 7%, terminal growth of 2% and WACC of 13.3%. This leads us to a revised fair value of Rs 359, representing a 20% upside from current levels. We upgrade the stock from Sell to Buy on the back of improved fundamentals of the company and clarity in revenue and profits going forward,” says Religare Hichens Harrison’s research report.
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