SoundGlobal - Sound Global raised to Buy by DBS Vickers with $0.96 target

Stock Name: SoundGlobal
Company Name: SOUND GLOBAL LTD.
Research House: DBS Vickers

DBS Vickers upgrades Sound Global (E6E.SG) to Buy from Hold, lifts target price to $0.96 from $0.84, based on 13.2x FY11 P/E, after increasing FY11 earnings forecast by 26%, says Dow Jones.

"We believe downside is limited in view of the various positive developments in the past month," says DBS Vickers.

Broker cites China-based water treatment firm's recent announcement of potential contract worth RMB1.38 billion ($272 million), RMB885 million raised through convertible bond sale, tomorrow's dual-listing in Hong Kong. Says RMB1.38 billion contract, once finalized, will bring year-to-date contract value to record RMB1.5 billion, 48% more than whole of last year's.

Shares +9.3% at $0.885.