Stock Name: Mermaid
Company Name: MERMAID MARITIME PUBLIC CO LTD
CIMB in a Mar 27 research report says: "Positive feedback from large offshore construction companies spells brighter prospects for Mermaid’s subsea arm. Strengthened by anew management team,we expect Mermaid to be back in the black, following two years of losses.
"Earnings risks are on the upside, as we have conservatively projected a 68% utilisation rate for FY12 –comparable to the 69% in FY11. We recommend investors buy ahead of a strong 2H. Downside risks are limited with the stock trading at 0.5x CY12 P/BV – the RNAV of its subsea fleet could be even higher than the trading price.
"In addition, CY12 EV/EBITDA of 3x highlights its strong operating cash flow generation and implies a cash payback of three years. No changes to our EPS estimates. Target price of 44 cents. MAINTAIN OUTPERFORM."
Company Name: MERMAID MARITIME PUBLIC CO LTD
| Research House: CIMB | Price Call: BUY | Target Price: 0.44 |
CIMB in a Mar 27 research report says: "Positive feedback from large offshore construction companies spells brighter prospects for Mermaid’s subsea arm. Strengthened by anew management team,we expect Mermaid to be back in the black, following two years of losses.
"Earnings risks are on the upside, as we have conservatively projected a 68% utilisation rate for FY12 –comparable to the 69% in FY11. We recommend investors buy ahead of a strong 2H. Downside risks are limited with the stock trading at 0.5x CY12 P/BV – the RNAV of its subsea fleet could be even higher than the trading price.
"In addition, CY12 EV/EBITDA of 3x highlights its strong operating cash flow generation and implies a cash payback of three years. No changes to our EPS estimates. Target price of 44 cents. MAINTAIN OUTPERFORM."
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