Stock Name: Marco Polo
Company Name: MARCO POLO MARINE LTD.
Research House: UOB KayHian
Company Name: MARCO POLO MARINE LTD.
Research House: UOB KayHian
UOB KayHian downgrades Marco Polo Marine (5LY.SG) to Hold vs Buy, cuts target to $0.36 vs $0.53 after lowering FY11-FY12 earnings estimates by 33.5%-11.6%; expects margin pressure to persist in FY11.
“We believe FY10 margins were aided by project-specific shipyard work, which we believe to be unsustainable. We also expect weaker ship chartering margins to persist due to higher sale and leaseback expenses.”
Suggests $0.30 entry price.
Tips sharp improvement in vessel charter rates, operating margins as catalysts.
Shares +1.2% at $0.41.
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