STX OSV: Could see slight pullback, after Co. announced much anticipated news that it has sold a 18.27% stake to OCH-Ziff Capital Mgt for USD 236m, or $1.33/share, to secure operating capital for the group. Post sale, STX Europe will still remain as grp’s biggest shareholder with a 50.7% stake…..
We note that based on Fri’s closing price of $1.42, post share sale could see new weighted average price at $1.40. We maintain positive view on stock, with street having a mean TP of $1.78 on grp, while an estimated strong orderbook of Nok 17,000, underpins earnings till 2014. Valuations remain compelling at 6x trailingP/E vs larger yards simple average of 14x. Any weakness in stock could represent a good opportunity to accumulate, as sharesale overhang has been removed.
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