Marco Polo - DMG downgrades Marco Polo Marine to Neutral vs Buy

Stock Name: Marco Polo
Company Name: MARCO POLO MARINE LTD.
Research House: DMG

DMG downgrades Marco Polo Marine (5LY.SG) to Neutral from Buy on valuation grounds after recent run-up, says Dow Jones. Trims target price to $0.505 from $0.525 to account for larger share base following recent placement of 51 million shares to fund expansion. 

Despite downgrade, still favors prospects for Indonesia-focused provider of ship chartering, building services; “the growing coal demand in Indonesia, coupled with the Cabotage rule, will continue to create opportunities for MPM to grow with its tugs and barges.” 

Under Indonesia’s Cabotage rule, effective since start of 2010, shipments of certain commodities, such as coal and oil, within Indonesian waters can only be carried out by Indonesia-flagged vessels. 

Shares down 2.1% at $0.46.