PACC Offshore Services price target cut 20% to 65 cents by Maybank Kim Eng

Stock Name: POSH
Company Name: PACC OFFSHORE SVCS HLDG LTD.

Research House: Maybank Kim Eng

Price Call: BUY

Target Price: 0.65

SINGAPORE (Feb 25): Maybank Kim Eng has cut its price target for PACC Offshore Services Holdings (POSH) from 81 cents to 65 cents, based on 0.7 times FY2015 book value. Its previous target was based on nine times projected earnings.

"With return on equity less than cost of equity, the company is destroying shareholder value, which warrants the below-book multiple," Maybank Kim Eng analyst Yeak Chee Keong wrote in a note today.