Stock Name: STXOSV
Company Name: STX OSV HOLDINGS LIMITED
Company Name: STX OSV HOLDINGS LIMITED
| Research House: CIMB | Price Call: BUY | Target Price: 1.70 |
15 Jun 2011 Singapore | |
Company Update | |
STX OSV [ PDF] | |
| Signs of improvement in North Sea | |
| (SOH SP / STXO.SI, OUTPERFORM - Maintained, S$1.19 - Tgt. S$1.70, Offshore & Marine) | |
| Faster-than-expected improvements in North Sea demand reaffirm our belief in a stronger order momentum for STX OSV in 2H11. The North Sea is an important yardstick for utilisation and day rates for the rest of the world. Also, while STX OSV's longer-term growth is underpinned by booming Brazil demand, its near-term orders are backed by the North Sea. We believe the rebound is not merely seasonal, but signals a sustained recovery. Hence, STX OSV's order momentum should strengthen in 2H to meet our FY11 order target of NOK10bn (excluding Transpetro orders), providing stock catalysts. No change to our earnings estimates or target price of S$1.70, based on 11x CY12 P/E (15% discount to rigbuilders' 5-year mean). | |
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