DBS Vickers upgrades Mermaid Maritime (DU4.SG) to Hold from Fully Valued, raises target price to $0.52 from $0.32, based on 0.8x FY10 P/B vs P/E methodology previously, says Dow Jones.

DBS Vickers notes stock trades at 59% discount to peers on book basis after recent sell-off driven by bigger-than-expected 2Q10 loss.

“We believe the negatives have been priced in, and investors should not ignore the value in Mermaid’s quality subsea assets,” says the broker.

DBS Vickers adds drilling services provider has fleet of good-quality vessels: “Full ownership of a young and extensive fleet of subsea assets enhances operational flexibility and cost control, while reducing reliance on third-party sub-contractors.”

Shares last +4.4% at $0.47.