Otto Marine - Otto Marine cut to Neutral by DMG; Target $0.39

Stock Name: Otto Marine
Company Name: OTTO MARINE LIMITED
Research House: DMG

DMG downgrades Otto Marine (G4F.SG) to Neutral from Buy, cuts target price to $0.39 from $0.46, based on 10x blended FY10-11 earnings, says Dow Jones.



Changes follow reduction in FY10-12 earnings forecasts by 13.3%, 4.6%, 1.9% respectively to reflect order cancelation, fewer contract assumptions.



DMG notes Norwegian customer Mosvold Supply’s intention to cancel order for vessel being built by Otto: “The highly leveraged position of Mosvold Supply has made it difficult for the company to take delivery.”



Says Otto hasn’t secured any new shipbuilding contract so far this year. Shares up 1.4% at $0.375.