STX OSV

STX OSV: Macquarie maintains O/p, TP $1.82. Note that with the share price overhang removed after the change in major shareholder from STX Corp to Fincantieri (55.63%), and the market underestimating the potential of recovery in vessel orders and margins, believe the stock is a bargain buy at 7x 2014E P/E, at a large 15–45% discount to Asian yards.