Pacific Andes target cut to $0.263 by OCBC

Stock Name: Pac Andes
Company Name: PACIFIC ANDES RESOURCES DEVLTD

Research House: OCBC

Price Call: BUY

Target Price: 0.263

OCBC Investment Research has cut its target price for Singapore-listed frozen fish supplier Pacific Andes Resources Development to $0.263 from $0.344 and kept its buy rating.

Pacific Andes’ full-year earnings, excluding a one-time charge for the early redemption of its sister firm China Fishery’s senior notes, was still lower than expectations due to a fall in gross profit margin to 21.5%.

OCBC has cut its fiscal 2012 earnings forecast by 17.6% to HK$705 million ($118 million), citing deteriorating outlook for the global economy and muted demand.

“While fish demand is fairly resilient, we expect current weak market conditions to translate into lower average selling prices later on,” said OCBC in a report.

At 11:11 a.m., shares of Pacific Andes were flat at $0.205, and have fallen 43% since the start of the year.