Brokers' take

PACC Offshore Services Holdings | Buy Target price: S$0.42 Feb 22 close: S$0.285 Maybank Kim Eng Research, Feb 22

PACC Offshore Services Holdings (POSH) has the least balance sheet risk among oil services stocks we cover, because: 1) FY15 net gearing is only 0.5 times; 2) It secured US$1 billion of loan facilities in Jan 2016 at interest rate of less than 2 per cent, where US$462 million of the loans have tenures of 5-7 years; 3) it has only US$161 million of outstanding capex commitment with US$117 million to be paid in FY16; and 4) it targets to save another US$10 million from cost cuttings in FY2016. POSH's strong financial strength vindicates our view that i…