ST Eng: UBS maintain Buy, TP $3.36. Note that Co. has settled legal dispute with Marineclient Louis Dreyfus Armateurs (LDA) and STE has agreed to pay LDA a sum amounting to not more than 10% of the contract value e.g less than $18m.
Provisions had already been made in STE’s P&L for this case, and do not expect further P&L impact. Valuations looks attractive and stock offers net yield of 5.6% and trades on the low end of its P/E valuation range: At 15.2x 1-year forward P/E vs its mean of 18.6x and 16.0x -1 SD.
No comments:
Post a Comment