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PR Newswire
23-09-2016, 11:02 AM
By UOB KAYHIAN
Our analysis of SCI’s implied valuation for
its non-marine business finds that it is
trading at a 20% discount below its long-term
historical mean. Additionally, implied
prices for both its businesses are either pri
ced for distress, or at a sharp discount to
regional peers. The market has overly discounted headwinds in the business and an
opportunity exists to accumulate. We also update on a minor hiccup in its India
operations and trim 2016 earnings by 1%. Maintain BUY with a lower target price of
S$3.29.
Our analysis of SCI’s implied valuation for
its non-marine business finds that it is
trading at a 20% discount below its long-term
historical mean. Additionally, implied
prices for both its businesses are either pri
ced for distress, or at a sharp discount to
regional peers. The market has overly discounted headwinds in the business and an
opportunity exists to accumulate. We also update on a minor hiccup in its India
operations and trim 2016 earnings by 1%. Maintain BUY with a lower target price of
S$3.29.
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.