$Mermaid Maritime (DU4.SG)$ Lim & Tan initiate a "BUY" recom...

Lim & Tan initiate a "BUY" recommendation on Mermaid Maritime with a target price of $0.30 based on 12.5x FY24PE, pegged to 15% discount to its peers. MMT boasts one of the world's largest DSV fleets and is a turnaround company strategically positioned to capitalise on the rising demand for decommissioning and IRM projects amidst higher oil prices and global sustainability initiatives. With high operating leverage due to their big fleet size amidst an industry upcycle, MMT has hit critical mass, and they expect further increases in revenue to significantly contribute to their bottom line.

Mermaid's market cap stands at S$268.5mln and currently trades at 8x forward PE and 1.1x PB.