CIMB has upgraded China Fishery Group (B0Z.SG) to Neutral from Underperform, raising target price to $1.70 from $1.60, pegged at 9.4x FY11 P/E, based on 10% premium to historical average 8.5x P/E vs 10% discount previously, says Dow Jones.

Changes reflect entry of Carlyle Group as substantial shareholder following placement of new shares, warrants to private equity giant, which would give it as much as 13.6% stake in fishing group.

“Management had previously indicated interest in fund-raising with a proposed but now-shelved Oslo secondary listing. We are slightly positive on the news as the number of new shares is smaller than we had feared, with pricing slightly above our original target price. Moreover, the strategic investor is a reputable name,” says CIMB.

Shares +7.1% at $1.96.