MTQ Corp cut to 'neutral', target slashed 45% to 79 cents by RHB

Stock Name: MTQ
Company Name: MTQ CORPORATION LIMITED

Research House: RHB

Price Call: HOLD

Target Price: 0.79

SINGAPORE (May 14): RHB Securities Singapore has downgraded MTQ Corp to "neutral" from "buy" and slashed its price target to 79 cents from $1.43, citing a lack of catalysts in the near term.

The revised target is based on 11 times projected FY2016 earnings. RHB cut its FY2016 earnings estimates by 37.5% as clients have been deferring maintenance work.

"Earnings will likely stay low in the next two quarters, although long-term investors will find value in its high cash flow and yield," RHB analyst Jesalyn Wong wrote in a note today.