MTQ Corp started at "add", $1.56 target by CIMB

Stock Name: MTQ
Company Name: MTQ CORPORATION LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 1.56

SINGAPORE (Oct 28): CIMB has started coverage on MTQ Corp with an "add" rating and a $1.56 price target, pegged at seven times projected FY2016 earnings and 1.5 times FY2015 book value.

The family-run company, which repairs, makes and rents oilfield equipment and tools, generates steady cash flows and profits and has found its "sweet spot" among multinational corporations in a "very fragmented and competitive equipment supplier landscape", according to CIMB analyst Yeo Zhi Bin.