Yangzijiang - Yangzijiang cut to Hold by OCBC; But ups target

Stock Name: Yangzijiang
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
Research House: OCBC

OCBC Investment Research downgrades Yangzijiang (BS6.SG) to Hold from Buy on valuation grounds after recent run-up, says Dow Jones.



Still, lifts target price to $1.90 from $1.76, based on 13x blended FY10-11 earnings vs 12x previously, to account for China-based shipbuilder’s better outlook, backed by recent U$915 million ($1.2 billion) worth of contracts to build 28 vessels.



“In the short term, we believe that the group’s earnings will be supported by the securing of more orders as customers take advantage of lower ship prices,” says



Shares off 1.1% at $1.74.