OCBC Investment Research and Maybank Kim Eng Research lowered their price targets on Hyflux Ltd after the water treatment company reported weaker-than-expected results.
OCBC cut its price target to S$1.35 from S$1.55 and maintained its hold rating, while Kim Eng reduced its target to S$1.15 from S$1.21 and maintained its sell rating.
Hyflux shares were up 0.4 percent at S$1.44, having risen around 20 percent so far this year.
OCBC cut its earnings forecast for Hyflux's 2012 fiscal year by 14 percent and by 11 percent for 2013 on lower margin assumptions.
Due to the geographical switch in Hyflux's order book profile to Asia from Middle East and North Africa, its gross margin fell to 38 percent in its first quarter from 51 percent a year ago, OCBC said.
Kim Eng downgraded its 2012-2014 earnings estimate by 10-15 percent on reduced margin assumptions.
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1027 (0227 GMT)
(Reporting by Eveline Danubrata in Singapore; firstname.lastname@example.org)