Singapore Stock Market News

STX OSV - Low-ball offer

StockFanatic
Publish date: Fri, 21 Dec 2012, 03:54 PM
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''STX OSV ''Neutral

Italian cruise shipbuilder, Fincantieri, has agreed to acquire 50.75% of SOH for S$1.22/share, a low-ball offer, in our view. Though SOH could succumb to some near-term selling pressure, we believe its fundamentals could eventually provide support at S$1.30-1.40. Hence, we remain Neutral with unchanged EPS estimates and target price (blended valuations, implying 7.8x CY13 P/E and 2.7x CY12 P/BV). We could revisit the stock once we get more colour from SOH.
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