We raise our target price for PVS by 13% and maintain an O-PF rating. We expect 2017 NPAT-MI to drop 17.2% YoY due to margin contraction in Mechanics & Construction (M&C) as well as continued losses in Seismic Survey & Remotely Operated Vehicle (SS & ROV). We forecast NPAT CARG of 12.4% in the period 2017-2021 on a robust upstream project pipeline; kick-off announcements expected in late 2017 should lift share price. Attractive valuation given 2017 P/B of 0.8x, EV/EBITDA of 3.3x