Not vested
RESEARCH ALERT-DBS ups Mermaid Maritime to "hold"
SINGAPORE, Oct 4 (Reuters) - DBS Vickers has upgraded Singapore's offshore marine services firm Mermaid Maritime to "hold" from "fully valued" and raised its target price to S$0.52 from S$0.32.
DBS said in a report Mermaid Maritime's stock is trading at a 60 percent discount versus its peers, based on a price-to-book basis.
"Most of the negatives have been priced in, and investors should not ignore the quality of Mermaid's subsea assets," said the broker.
However, DBS said it expected Mermaid's earnings for fiscal years 2010 and 2011 to remain weak, but projects a strong rebound in 2012.
Shares of Mermaid Maritime rose 4.4 percent to S$0.47 at 0243 GMT, but have fallen 44 percent so far this year.
Source: Reuters