Mermaid Maritime cut to "hold", target cut to 31 cents by CIMB

Stock Name: Mermaid Maritime
Company Name: MERMAID MARITIME PUBLIC CO LTD

Research House: CIMB

Price Call: HOLD

Target Price: 0.31

SINGAPORE (Feb 11): CIMB has downgraded Mermaid Maritime to "hold" from "add" and cut its price target from 45 cents to 31 cents, based on 0.6 times 2015 book value.

"Recent checks with Mermaid reveal that the company is facing a confluence of negative events in the form of underutilisation of its tender rig drilling business, overcapacity from its extended subsea business, cost overruns from its cable-laying projects in the Middle East, and simultaneous dry-docking of all its dive support vessels (DSVs) in 1Q15," CIMB analyst Yeo Zhi Bin wrote in a note.