CIMB has downgraded Pacific Andes Resources Development (P11.SG) to Neutral from Outperform, cutting its target price to $0.32 from $0.41 after lowering FY10–12 EPS estimates by 8–9%, says Dow Jones.

Changes factor in smaller stake of 57.6% in China Fishery (B0Z.SG) vs 65% following unit’s placement of shares, warrants to Carlyle Group to raise up to US$190 million ($266 million).

“A lack of immediate productive use of China Fishery’s placement proceeds would dilute Pacific Andes’ earnings,” says CIMB.

The research house cites falling fishmeal prices, due to expectations of higher supply and weaker demand, as another negative for fishing group.

Shares off 1.7% at $0.295.