Vard

Vard: On its latest contract win announced last Friday, Citi reckons that not only will it improve capacity utilization at Vard's Vietnamese facility, the order is another demonstration of Vard's ability to successfully broaden both its customer and geographical mix (other new customers in recent months include Harkand Group and Carlotta Offshore). Vard's share price has rallied almost 20% since the start of the year on the back of its remarkable string of contract wins. Citi believes the robust order intake has raised investors' tolerance to the group's clouded earnings outlook in 2014, which is expected to remain hamstrung by operational headwinds in Brazil. Citi maintains its Buy rating with $1.02/shr TP, based on 8x average FY14-15E earnings.