Wednesday, March 2, 2016

Vard kept at ‘fully valued’ by DBS Vickers with lower 13 cents target price

DBS Vickers is maintaining its “fully valued” call on Vard Holdings but trimming its target price to 13 cents from 15 cents.

In a Tuesday report, analyst Suvro Sarkar says investors should avoid Vard Holdings pending clarity on the ship builder's Brazilian business operations and outlook for new business plans.

“Despite about 40% fall in share price year-to-date in 2016, we would avoid the stock until there is more visibility,” it says in a note.

The comments come after the company reported a NO 83 million ($13.4 million) net loss for the fourth quarter. Vard’s order book declined from NOK17.7 billion at end-2014 to NOK10.2 billion at end-FY2015.

Vard shares last closed at 16 cents.

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