STX OSV jumps after order win

Stock Name: STXOSV
Company Name: STX OSV HOLDINGS LIMITED

Research House: DMG

Price Call: HOLD

Target Price: 1.20

Shares of Singapore-listed shipbuilder STX OSV Holdings (STXO.SI) rose as much as 4% on Wednesday to a one-month high after the company said it secured a contract worth 1.2 billion Norwegian crowns ($264.71 million) for the construction of a research vessel.

At 9:45 a.m., shares of STX OSV were 3.1% higher at $1.16 with about 4 million shares changing hands.

“The new order is a positive surprise,” said DMG & Partners in a report, adding that it now expects STX OSV's order wins so far this year to be more than 7.4 billion Norwegian crowns, boosted by the latest contract.

DMG also raised its fiscal 2011 earnings-per-share estimate for STX OSV by 7%, and increased its share-price target to $1.20 from $1.14. It kept its neutral rating on the stock.