POST IPO IT RALLIED TO A HIGH OF 97 CENTS . AND HAD CORRECTED TO CURRENT PRICE .
Target price of S$1.27 is derived from the risked NAV of Rex’s oil concessions, using the expected monetary value methodology based on average rates of exploration success from conventional methods of analysis.
We have not imputed improved success rates with the use of RT, which may provide further upside to our target valuation if RT proves to be successful.
REX (60.5 cents) currently commands a market value of S$662 million ---> which means it has to deliver strong pipeline of earnings to justify it. Until the first hint of oil strike happens, it's hard to see the market cap running very much higher.