A pull back in MCE’s share price nearer to our $0.47 DCF valuation gives us cause to upgrade to a HOLD (prior SELL). We note that significant forecasting risk remains as the Company is in the infancy of its diversification away from the weak riser buoyancy market. However, we are encouraged by early success in penetrating new markets with LGS, growing SURF’s revenue contributions and securing work in civil & infrastructure, where the opportunity in bulk freight is particularly appealing.
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