Vard Holdings cut to 'sell', target reduced to 40 cents by Maybank

Stock Name: Vard
Company Name: VARD HOLDINGS LIMITED

Research House: Maybank Kim Eng

Price Call: SELL

Target Price: 0.40

SINGAPORE (May 14): Maybank Kim Eng has downgraded Vard Holdings to "sell" from "hold" and cut its price target to 40 cents from 58 cents, citing a "murky" business outlook for the shipbuilder.

The revised target is based on 0.6 times 2015 book value.

Vard sank into the red in 1Q2015 with a net loss of NOK92 million ($16.3 million), hurt by foreign-exchange losses stemming from a 15-year yard construction loan in Brazil denominated in US dollars.

It earned NOK92 million in the same period last year.