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RESEARCH ALERT-UPDATE 1-UOB downgrades ASL Marine to "sell"
SINGAPORE, Aug 19 (Reuters) - UOB has downgraded its rating on Singapore marine company ASL Marine to "sell" from "hold" and lowered its target price to S$0.84 from S$1.07.
OCBC Investment Research has also lowered its target price to S$1.04 from S$1.09, but maintained its "buy" rating.
UOB Sell (Hold) S$0.84 (S$1.07) Marine
OCBC Buy (Buy) S$1.04 (S$1.09)
STATEMENT: UOB KayHian has lowered its forecasts for ASL Marine's 2011 and 2012 financial year net profit by 15 and 35 percent respectively due to lower contract wins and margin assumptions.
The brokerage said the visibility of new ship building contracts remains murky, while the ship repair and ship chartering segments appear to have bottomed.
It said it expects the firm's share price to continue to slump although its downside will be limited.
Shares of ASL Marine fell 2.23 percent to S$0.875 at 0347 GMT, down 8.4 percent so far this year.
Source: Reuters