Stock Name: STXOSV
Company Name: STX OSV HOLDINGS LIMITED
OCBC Investment Research in a Feb 6 research report says: "Unlike Asian shipyards, which mainly construct vessels of higher standardization and less sophistication, STX OSV focuses on building technologically advanced and highly customized offshore vessels.
"In other words, STX OSV competes on design quality and manufacturing flexibility, while Asian shipyards compete primarily on costs and production volume. Given the general oversupply of OSVs in the market and an uncertain global outlook, we think that STX OSV is well-positioned both for growth and to weather any storm.
"The shares of major global offshore yards and local midcap offshore players are trading at 10x and 9.4x FY12F EPS respectively. We value STX OSV at 9.7x FY12F EPS. Fair value estimate of $1.65. BUY (initiating coverage)."
Company Name: STX OSV HOLDINGS LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 1.65 |
OCBC Investment Research in a Feb 6 research report says: "Unlike Asian shipyards, which mainly construct vessels of higher standardization and less sophistication, STX OSV focuses on building technologically advanced and highly customized offshore vessels.
"In other words, STX OSV competes on design quality and manufacturing flexibility, while Asian shipyards compete primarily on costs and production volume. Given the general oversupply of OSVs in the market and an uncertain global outlook, we think that STX OSV is well-positioned both for growth and to weather any storm.
"The shares of major global offshore yards and local midcap offshore players are trading at 10x and 9.4x FY12F EPS respectively. We value STX OSV at 9.7x FY12F EPS. Fair value estimate of $1.65. BUY (initiating coverage)."
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