DnB Nor has downgraded Otto Marine (G4F.SG) to Sell from Hold as stock has breached its $0.35 target price, says Dow Jones.

DnB Nor says shipbuilder, supplier of offshore support vessels continues to face weak order flows, with no new building contracts secured so far this year.

“Newbuild orders for deepwater offshore support vessels are likely to remain slow with current weak sentiments and uncertainties surrounding the demand for OSVs in the US Gulf,” says DnB Nor.

Research house adds multi-purpose drillship currently being built for client Norshore may be frowned on as concept for vessel initiated in 2008 when day rates for drilling units were high: “Since then, the rates have fallen more than 50%, making this concept less attractive and cost effective.”

Shares flat at $0.405.