Stock Name: STXOSV
Company Name: STX OSV HOLDINGS LIMITED
Research House: DMG
DMG says the shipbuilder’s 4Q10 results showed “strong bottomline on better execution” with net profit of NOK294 million (up 121% on-year, up 94% on-quarter) thanks to stronger EBITDA margins of 11.4% vs 6.8% in 4Q09.
Company Name: STX OSV HOLDINGS LIMITED
Research House: DMG
DMG raises STX OSV’s (MS7.SG) target to $1.75 from $1.56, based on an unchanged target P/E of 12X, after upping its earnings forecasts; it keeps its Buy rating.
DMG says the shipbuilder’s 4Q10 results showed “strong bottomline on better execution” with net profit of NOK294 million (up 121% on-year, up 94% on-quarter) thanks to stronger EBITDA margins of 11.4% vs 6.8% in 4Q09.
“FY10 net profit of NOK1.031 billion was 23%-28% ahead of ours and consensus estimates as margins surprised on the upside due to better execution and the release of risk contingencies to profit.”
DMG raises its FY11-FY12 EPS estimates by 12% on higher forecast EBITDA margins of 10% vs 9.0% previously.
The house says key catalysts include new order wins, continued strong margins, and the huge valuation gap between STX OSV and big-cap shipyards. Its shares are down 0.8% at $1.18.
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