Singapore Stock Market News

PEC Ltd - PECking up coverage

StockFanatic
Publish date: Wed, 17 Oct 2012, 10:06 AM
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A challenging operating environment continues to plague EPC contractors. Given the unexciting order pipeline, heightened price competition and cost pressures, prospects for EPC contractors are dull. We are dropping coverage of PEC due to a lack of institutional interest.

Factoring in higher sales and margins, we increase our FY13-14 EPS by 29-55%. Our last rating was Underperform, with a higher target price based on 0.8x CY13 P/BV as we roll it forward by a year.
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