Vard kept at 'hold' with lower target price of 58 cents by Maybank Kim Eng

Stock Name: Vard
Company Name: VARD HOLDINGS LIMITED

Research House: Maybank Kim Eng

Price Call: HOLD

Target Price: 0.58

SINGAPORE (Mar 16): Maybank Kim Eng is maintaining a "Hold" rating for Vard Holdings and drops its target price from $0.60 to $0.58 after a series of delays and terminated contracts plagued the shipbuilder.

Vard terminated contracts for two PSVs from E.R. Offshore, worth US$74 million after the latter filed for bankruptcy. Vard expects to recover its losses through 10% repayment and selling both PSVs.

Upstream also reported that Island Offshore has requested Vard to postpone delivery of three PSVs and an OSCV, worth US$268 to 292 million, by half a year.