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Mermaid Maritime - Double-barrelled wins

StockFanatic
Publish date: Mon, 29 Oct 2012, 10:38 AM
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Mermaid's US$530m subsea win underscores the division's turnaround. On its US$236.5m jack-up contract, we are more neutral, given its partner Seadrill's intention to eat the whole cake. Still, both headline contracts could lead to a stock re-rating. We hold off EPS adjustments till FY12 results in Nov. Maintain Outperform and target price (0.7x CY13 P/BV, 3-year mean), with catalysts to come from a stronger subsea.
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