Marco Polo Marine

Marco Polo Marine: OSK-DMG says the order to build a Pacific Class 400 jack up rig at PPL Shipyard for US$214.3m is a potential "game changer". MPM secured a good price, and the payment terms (10-10-80%) are attractive. Upon delivery in 4Q15, the rig would double MPM's earnings in three years , boosting its 3-5 yr earnings CAGR to 32-38%. This represents a long term growth driver as well as strong re-rating catalyst. MPM still trades below book value. OSK-DMG lifts TP to $0.65, reiterates BUY.