Mermaid Maritime cut to "hold", target cut to 24 cents by Maybank Kim Eng

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

Research House: Maybank Kim Eng

Price Call: HOLD

Target Price: 0.24

SINGAPORE (March 2): Maybank Kim Eng has downgraded Mermaid Maritime to "hold" from "buy" and cut its price target from 38 cents to 24 cents, based on 0.5 times 2015 book value instead of nine times projected earnings for this year.

The changes came after the company, which provides subsea and drilling services, said earnings for the December quarter dived 67% y-o-y to US$4.3 million ($5.8 million) from US$13.2 million a year earlier.

One of its rigs was not utilised during the quarter while another was on standby in December after having completed a project.