Wednesday, December 21, 2011

Maybank IB downgrades Tanjung Offshore to Sell, cuts TP to 70 sen

Larger Smaller Reset KUALA LUMPUR (Dec 21): Maybank Investment Bank Bhd Research has downgraded TANJUNG OFFSHORE BHD [] to Sell from Buy previously and cut its target price to 70 sen (from 98 sen) ahead of the company's 4Q results.

The research house said Tanjung's 4Q results would be hit by a confluence of issues at its engineering equipment division.

'For this, we forecast TOFF to end 2011 with a higher net loss of RM14 million, making consensus and our initial estimates untenable.

'The stock is unlikely to re-rate until the company shows tangible signs of managing costs effectively,' it said in a note Wednesday.

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