Tat Hong

Tat Hong: DBSV slashes TP to $1.42 from $1.80, warns the economic situation in Australia presents downside risk to earnings. Notes poor mining, infrastructure spending outlook and a weaker AUD (down 9% vs SGD) will hamper earnings growth. These could result in slower equipment sales/rental and translation losses for 1Q14F. Nevertheless the house maintains its Buy call, says despite near-term headwinds, the stock is attractive based on valuation at 9.8x P/E (-0.5 SD below mean).