“Share price has corrected by close to 50% post our downgrade in November 2020. Riverstone is now trading at an attractive 7.3x FY2021F price-to-earnings (P/E), which is near -1 standard deviation (s.d.) of its 5-year P/E average,” says Ling in a Jan 11 report. “Furthermore, we also expect a bumper dividend for FY2020F.”
DBS Group Research analyst Ling Lee Keng has upgraded Riverstone Holdings to “buy” from “hold”, albeit with a lower target price of $1.85 from $2.03 previously.
The upgrade comes as valuations for the counter have become more “attractive” after a correction in its share price.
