Stock Name: STXOSV
Company Name: STX OSV HOLDINGS LIMITED
CIMB in a Sept 19 research report says: "STX OSV's share price has fallen sharply on concerns that tightening credit could slow down its order intake. We were the first to downgrade the O&M sector based on the same fears.
"We now reduce our earnings estimates for STX OSV for FY2012-2013 by 2-10% as we scale back order expectations by 20-23%. Our target price dips accordingly to $1.85 (from $1.89), still based on 11x CY12 P/E (5-year mean for small-mid-cap industrials).
"Notwithstanding this, we maintain our outperform rating, believing in minimal cancellation risks for its quality order book and buffer to withstand a downturn. We continue to anticipate catalysts from strong quarterly results, 8% dividend yields and continued good project execution. MAINTAIN OUTPERFORM."
Company Name: STX OSV HOLDINGS LIMITED
| Research House: CIMB | Price Call: BUY | Target Price: 1.85 |
CIMB in a Sept 19 research report says: "STX OSV's share price has fallen sharply on concerns that tightening credit could slow down its order intake. We were the first to downgrade the O&M sector based on the same fears.
"We now reduce our earnings estimates for STX OSV for FY2012-2013 by 2-10% as we scale back order expectations by 20-23%. Our target price dips accordingly to $1.85 (from $1.89), still based on 11x CY12 P/E (5-year mean for small-mid-cap industrials).
"Notwithstanding this, we maintain our outperform rating, believing in minimal cancellation risks for its quality order book and buffer to withstand a downturn. We continue to anticipate catalysts from strong quarterly results, 8% dividend yields and continued good project execution. MAINTAIN OUTPERFORM."
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