Company Name: STX OSV HOLDINGS LIMITED
| Research House: Nomura | Price Call: SELL | Target Price: 1.68 |
Nomura initiates coverage of Singapore-listed offshore vessel builder STX OSV Holdings with a reduce rating and a target price of $1.68.
STX OSV’s shares have risen 53% so far this year to close at $1.78 on Monday.
“Although the outlook for the company and the offshore support industry remains relatively positive, order book replenishment remains a concern,” Nomura said in a report.
The broker said new contracts secured so far this year only accounts for 10% of Nomura’s order win assumptions.
It said STX OSV’s valuations also look lofty, as it is trading at 8.7 times its 2012 forward price-to-earnings ratio, the high end of its historical PE band of 4-9 times.
Out of 12 brokers tracking the stock, 11 have a buy or strong buy and one has a hold rating.
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