SINGAPORE (March 4): RHB Research is upgrading offshore vessels builder Vard Holdings to “buy” from “sell” on the back of order inflows from its parent company Fincantieri.

The research house says the upgrade also follows a 72% fall in Vard's stock price since April last year.

However, RHB cuts Vard's share price target to 21 cents from 29 cents.

“We see its parent Fincantieri providing enough work for Vard to tide through the downturn, as the former has too many orders while the latter too much yard capacity,” RHB Research notes. The offshore marine industry is hurt by the sharp fall in international crude oil prices as customers have cut investments, hurting overall order inflows.

At 2.48pm, Vard shares are up 2.65% at 19 cents.