FalconEne - Falcon Energy target cut to 60 cents by Kim Eng

Stock Name: FalconEne
Company Name: FALCON ENERGY GROUP LIMITED
Research House: Kim Eng

Kim Eng Securities cuts Falcon Energy (5FL.SG) target to $0.60 vs $0.85, pegged at 10x FY11 P/E, after lowering FY10-FY12 EPS estimates by 20%-40% to reflect weaker-than-expected 3Q10 performance.



3Q10 earnings down 57.2% on-year at US$2.8 million ($3.7 million) due to dry-docking of 5 vessels for major overhaul, lower vessel charter and utilization rates.

Still, keeps Buy call on valuation grounds; “despite maintaining a cautious near-term outlook, management is optimistic of a gradual recovery of the marine and offshore industry by 2Q11.”



Shares +1.2% at $0.425.