Mermaid Maritime: DBS Vickers upgrades to Hold from Fully Valued, raises target price to $0.52 from $0.32, based on 0.8X FY10 P/B. Notes stock trades at 59% discount to peers on book basis after recent sell-off driven by bigger-than-expected 2Q10 loss. Tips negatives have been priced in & sees value in Mermaid's quality subsea assets. Highlights drilling services provider has full ownership of young & extensive fleet of subsea assets, which enhances operational flexibility & cost control...
while reducing reliance on 3rd-party sub-contractors. Watch out for a break of 5-month consolidation pattern at $0.50, which may take it to next target of $0.57.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment