UOB downgrades AusGroup

UOB downgrades AusGroup to Sell from Buy; cuts target price to $0.43 from $1.40. Broker says stock looks fully valued post weak 4Q08 results, notes excluding provision writeback, 4Q08 would have showed net loss, margins sharply lower, operating expenses high, disappointing performance from subsea division. Cuts FY09, FY10 earnings forecasts by 46%, 36%, respectively; says new target price assumes FY10 PE of 5X, in line with Singapore small-cap offshore services stock valuations.