Stock Name: STXOSV
Company Name: STX OSV HOLDINGS LIMITED
Research House: DBS Vickers
DBS Vickers Securities in a May 25 research report says: "STX OSV specialises in the construction of complex and specialised vessels used across the offshore services industry.
"We assumed FY2011 order wins of NOK13 billion vs. YTD order wins of NOK5.5 billion (including the 8 Transpetro LPG carriers to become effective upon funding approval). Despite full yard utilisation till late 2012/early 2013, improved project execution and efficiency gains are expected to result in superior EBITDA margins of >10% over FY2011F-2012F, supporting FY2010-2012 recurring earnings CAGR of 15%.
"Target price of $1.86, pegged to 11x blended recurring FY2011/2012 PE. At 7x FY11 PE, STX OSV trades at an unwarranted discount to peers, with valuations supported by steady earnings growth and a dividend yield of 4.2-4.5%. BUY (initiating coverage)."
Company Name: STX OSV HOLDINGS LIMITED
Research House: DBS Vickers
DBS Vickers Securities in a May 25 research report says: "STX OSV specialises in the construction of complex and specialised vessels used across the offshore services industry.
"We assumed FY2011 order wins of NOK13 billion vs. YTD order wins of NOK5.5 billion (including the 8 Transpetro LPG carriers to become effective upon funding approval). Despite full yard utilisation till late 2012/early 2013, improved project execution and efficiency gains are expected to result in superior EBITDA margins of >10% over FY2011F-2012F, supporting FY2010-2012 recurring earnings CAGR of 15%.
"Target price of $1.86, pegged to 11x blended recurring FY2011/2012 PE. At 7x FY11 PE, STX OSV trades at an unwarranted discount to peers, with valuations supported by steady earnings growth and a dividend yield of 4.2-4.5%. BUY (initiating coverage)."
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