STX OSV

STX OSV: Strong momentum continues, with grp announcing that it has secured contracts for the design and construction of 2 Platform Supply Vessels (PSVs) for Farstad Shipping. The total value of the contracts amounts to approximately Nok 700m. The first vessel is scheduled for delivery in 2Q14 from STX OSV Langsten in Norway and the second vessel in 3Q14. Latest contracts lifted Ytd order wins to approximately NOK6.9b vs FY11 at Nok11.1b and brings current order book to approximately Nok18-19b, vs FY11 order book of Nok16.7b and underpinning earnings visibility for 2 yrs. DBSV maintains Buy with $2.00 TP on back of contract wins. We also note that majority of street remains positive on stock, with 13 Buy Calls and 2 Holds with a Mean TP of $1.88.