My broker report on PCG, dated 1 November 05 rated PCG as a buy with a price target of 78c (12x 2006 EPS)and a valuation of 85c (DCF).
Broker believes that PCG will have high demand for equipment and is well placed for 2006 growth with the WA resources sector and Middle East Oil and Gas projects continuing to drive demand.
The broker says: - expects PCG to be set for at least 2 years of very good growth which would largely see PCG's recent capital investment paid off. This mitigates the risk that the equipment will become difficult to deploy (only additional cost is storage). - recent capital raising has allowed PCH to pay off debt. - macro environment is expected to remain strong for at least the medium term. - the business is more diverse than in gthe past with respect to sectors and geography. This is supported by increasingly longer contracts.
PCG Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
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