Boustead Singapore cut to "hold", target reduced to $1.88 by CIMB

Stock Name: Boustead
Company Name: BOUSTEAD SINGAPORE LIMITED

Research House: CIMB

Price Call: HOLD

Target Price: 1.88

SINGAPORE (Dec 3): CIMB has downgraded Boustead Singapore to "hold" from "add" and cut its price target from $2.06 to $1.88, based on a revised sum-of-parts valuation.

The sharp fall in oil prices over the last few months will mean fewer projects for the engineering firm's energy infrastructure division, according to CIMB analysts Roy Chen and William Tng, who cut their FY2016 earnings estimate for Boustead's energy arm by 36% to $15.2 million.