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RESEARCH ALERT- Phillip cuts Mercator Lines target to S$0.28
SINGAPORE, Feb 2 (Reuters) - Phillip Securities has cut its target price for Singapore's Mercator Lines to S$0.28 from S$0.32 and kept its "hold" rating.
STATEMENT: Phillip has cut its estimates for Mercator due to its worse-than-expected quarterly earnings and weak dry bulk shipping rates as a result of floods in Australia.
Mercator reported its October-December net-profit fell 32 percent to $5.09 million from $7.53 million a year earlier, hit by higher expenses.
"It is anticipated that it may take several months before the situation in Australia improves and mines reopen. New vessels continue to enter the shipping market and cause an overcapacity," said Phillip in a report.
At 0242 GMT, shares of Mercator were flat at S$0.26 and have fallen 3.7 percent so far this year.
Source: Reuters