Shares of Singapore-listed Norwegian shipbuilder STX OSV (STXO.SI) rose as much as 3.5% on Tuesday after CIMB Research started coverage of the firm with an “outperform” rating, traders said.

At 0139 GMT, STX OSV shares were traded at $1.19 with over 5 million shares changing hands.

 

CIMB, which has a target price of $1.60 for STX OSV, said it expects the firm's earnings to grow at an average of 34% a year over the next three years, helped by a recovery in the offshore supply vessel sector.

 

“With better capabilities, stronger earnings growth and visibility, and a quality order book, we place STX OSV in a league above the rest of the local offshore supply vessel builders,” said CIMB in a report.