Mencast

Mencast: OSK-DMG reiterates Buy, nudges TP up to $0.75 (from $0.74), based on 11x FY14e P/E. The house sees clear synergies between Mencast’s offshore engineering and energy divisions, and its newly acquired companies that manufacture and repair heat exchangers and pressure vessels. Moreover, the purchase price of $5.1m was a bargain at 2.6x P/E, based on the average profit warranty. Accordingly the house raises its FY14/15e estimates by 3%/7%.