MTQ Corp cut to "hold", targeted slashed to 95 cents by CIMB

Stock Name: MTQ
Company Name: MTQ CORPORATION LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 1.55

SINGAPORE (Feb 3): CIMB has downgraded MTQ Corp to "hold" from "add" and slashed its price target from $1.55 to 95 cents, which imply 5.7 times projected FY2016 earnings and 1.1 times FY2015 book value.

It has also lowered its FY2015 to FY2017 earnings per share estimates by 24% to 32% to factor in expected weaker profit margins.

The changes came after MTQ, which makes and repairs oilfield equipment, said its December-quarter (FY3Q2015) earnings tumbled 78% y-o-y and 72% q-o-q to $1.4 million on weaker performances at its Singapore and Australia operations.