STX OSV: CS maintains O/P with $1.55 TP. Note of overhang from potential share placement and believe there could be a placement of shares by STX Europe after 11 May 2011,which is likely to be a dampener to the share price in the near term, but increased liquidity should be beneficial in the medium term….
Add that STX Europe holds 69% of shares outstanding of STX OSV, and could raise $260m if it maintains its majority stake post the placement. Remain confident of grp’s underlying fundamentals of the business, noting that order wins YTD stood at Nok2.5b, and expect contracts for 8 LPG carriers worth US$536.3m (Nok3.2b) to become effective following financing approval from Brazil’s Merchant Marine on 12th May. 1Q11 results will be on 12th May.
No comments:
Post a Comment