Goldman Sachs Ups Aban Offshore

Goldman Sachs has upgraded Aban Offshore’s price target to Rs 3450 from Rs 2,900. Goldman believes potentially higher than expected contract renewal rates could be positive catalysts for Aban.

At 8.5X ’08E P/E & 6.9X EV/DACF, Aban’s valuation remains one of the most attractive in the sector. COSL stock is currently the most expensive among all the oil services stocks globally at 24.8X ’08E P/E & 15.9X EV/DACF. Goldman Sachs raises 12-m DCF-based TP on Aban to Rs 3,450 (from Rs2,900); keep Buy.