Boustead Sp - Boustead Singapore cut to Hold by DBS Vickers

Stock Name: Boustead Sp
Company Name: BOUSTEAD SINGAPORE LIMITED
Research House: DBS Vickers

DBS Vickers downgrades Boustead Singapore (F9D.SG) to Hold from Buy, trims target price to $1.00 from $1.10, which translates to 9.6x FY12 P/E.

Changes reflect sluggish pace of contract wins, with $100 million worth of orders secured in current FY vs house’s $400 million forecast.

Says while enquiries on engineering group’s services “still very robust”, potential clients slow to conclude negotiations.

Adds 2H11 performance likely to be affected by further delays in Boustead’s Libyan township project, secured in 2006 but little progress achieved so far due to “severe red tape”.

Shares last down 1.8% at $1.10.