SINGAPORE (Nov 16): Pan United Corporation’s earnings are set to improve after the one-off buyout of its loss-making tugs and barges business by its key shareholders, yet DBS Group Research remains sceptical of the mixed outlook from its other core businesses.

The brokerage has maintained its “hold” recommendation and raised its target price from 56 cents to 59 cents.

DBS analyst Alfie Yeo raised Pan United’s earnings forecast by over 30% to $23.1 million for FY17, accounting for the $5 million in depreciation that would no longer be applicable after the buyout. On the other hand, the remaining shipping businesses would only contribute $1 million in earnings moving forward.

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