Stock downgraded: Pac Andes price target of 1.19 by CIMB-GK!

CIMB-GK Research said it has cut its target price for Pacific Andes Holdings (PAH) to 1.19 sgd from 1.22 sgd to reflect the share price decline of its unit China Fishery Group. But to factor in future contributions from its purchase of three Peruvian companies, CIMB has raised Pacific Andes' earnings per share estimates by 1 pct for the year to March 2007, 9 pct for 2008 and 11 pct for 2009. "Establishing itself in Peru (through the acquisition), PAH exposes itself to one of the most productive fishing regions globally," CIMB said in a client note. Hence, while CIMB considers the 100 mln usd acquisition as pricey, raising the net gearing for PAH to about 140 pct, it is still keeping its 'outperform' rating on the stock. At 10.51 am, Pacific Andes was down 0.005 sgd or 0.73 pct at 0.685 on volume of 263,000 shares.