MTQ Corp price target cut 19% to $1.43 by OSK DMG

Stock Name: MTQ
Company Name: MTQ CORPORATION LIMITED

Research House: OSK-DMG

Price Call: BUY

Target Price: 1.43

SINGAPORE (Feb 2): DMG OSK has cut its price target for MTQ Corp from $1.77 to $1.43, based on seven times enterprise value to ebitda, after lowering its earnings estimates by 34% for FY2015 and by 36% for FY2016.

The company, which makes and repairs oilfield equipment, said last Friday that earnings for the quarter ended Dec 31 fell 66% y-o-y to $2.2 million on weakness in its Singapore and Australia operations.

Revenue was flat at $74.8 million while operating expenses and staff costs went up.