Phillip Securities downgrades Otto Marine (G4F.SG) to Hold from Buy, cuts target price to $0.40 from $0.58 based on 1.40x P/B vs 1.95x previously, according to Dow Jones.

Phillip says company’s chartering, specialised offshore services businesses expected to continue growing for next 3 years, but chartering rates may decrease as new vessels enter market.

“We are (also) concerned that Otto Marine may see weakness in its shipbuilding segment next year as its order book has been declining due to a lack of new orders,” says research house. Shares off 1.2% at $0.405.