Swissco kept at 'add' by CIMB, lifts target price to 61 cents

Stock Name: Swissco Hldg
Company Name: SWISSCO HOLDINGS LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 0.61

SINAGPORE (May 13): CIMB Research is maintaining its "Add" call on Swissco Holdings with a higher target price of 61 cents based on blended valuations.

Its previous target price of 55 cents was based on 7.5 times calendar year 2016 price to earnings ratio.

"The current valuation of 0.8 times calendar year 2015 (CY15) price to book value (P/BV) versus forward return on equity (ROE) of 13% and cost of equity (COE) of 9% is far too pessimistic, in our view," said CIMB analyst Yeo Zhi Bin and Lim Siew Khee.

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.

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.