SembMar - SembMarine raised to Outperform by Daiwa; $4.54 target

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Research House: Daiwa

Daiwa upgrades Sembcorp Marine (S51.SG) to Outperform from Underperform, lifts target price to $4.54 from $4.10, to assume contracts from Petrobras, says Dow Jones.



“SembMarine is a high-risk/high-reward investment proposition, which has a chance of winning seven to nine rig contracts this month, but also a higher-than-50% chance of winning none.”

Daiwa notes company currently has no yard in Brazil, but intends to build one if it wins some Petrobras contracts.



“We do not think SembMarine will build the yard unless it wins an order for at least seven drillships,” says Daiwa.



Shares off 0.8% at $3.90.