Swissco price target slashed 39% to 55 cents by CIMB

Stock Name: Swissco Hldg
Company Name: SWISSCO HOLDINGS LIMITED

Research House: CIMB

Price Call: HOLD

Target Price: 0.55

SINGAPORE (April 10): CIMB has cut its price target for Swissco Holdings to 55 cents from 90 cents after lowering its FY2015 to FY2017 earnings per share estimates by 30% to 39% to reflect a projected 20% fall in day rates for the company's rigs.

Swissco has nine rigs, of which seven are chartered to Pemex. Three of these seven rigs are operated by GSP while four are by Ensco.

Contracts on three of the four rigs operated by Ensco are due for renewal this year.