Swissco price target cut 25% to 90 cents by CIMB

Stock Name: Swissco Hldg
Company Name: SWISSCO HOLDINGS LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 0.90

SINGAPORE (March 5): CIMB has cut its price target for Swissco Holdings from $1.20 to 90 cents, based on 7.5 times projected FY2016 earnings, after lowering its estimates to factor in reduced demand for its services.

"Given the weak industry sentiment, we now expect only two new 50%-owned rigs to be added to its fleet in 2H15 instead of four 100%-owned rigs for 2015," CIMB analysts Lim Siew Khee and Yeo Zhi Bin wrote in a note.