Kreuz (technical)

Kreuz: UOB Kay Hian has Technical Buy Call with $0.53 TP. House think the upcycle in the oil service sector is intact, with the increase in charter rates as concrete evidence. This year, see small caps outperforming the large caps as they continue to re-rate. Kreuz will benefit from the positive outlook for subsea contractors. A catalyst for the stock would be the entry of a game-changing asset, wherein negotiations are currently ongoing. Kreuz has a healthy tenderbook with the outcome of several tenders likely to be known by early this year. TP is $0.53, pegged at 5x 2014F PE. BUY. The stock may test $0.53 should it be well supported at above $0.41. It has since retraced after hitting a high of $0.475 recently.