Vard

Vard: Vard’s Norwegian peer, Havyard, has completed its Oslo IPO, following a cut in its IPO price (from NOK36/share to NOK33.50/share). The pricing implies a market cap of NOK755m, and values the stock at 5.4x CY13 P/E and 1.1x CY13 P/BV. In comparison, Vard trades at 14.8x CY13 P/E and 1.7x CY13 P/BV. While CIMB thinks that a premium is warranted, the wide valuation gap does not inspire much confidence. For now, Vard's earnings recovery looks priced in, while risk-reward looks to be balanced. CIMB maintains Hold with TP $1.19, will re-visit the stock on stronger margins and orders.