Tuesday, October 19, 2010

SembMar - CIMB Ups SembMarine to Outperform; target $5.23

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


CIMB upgrades SembCorp Marine (S51.SG) to Outperform from Neutral, raises target to $5.23 from $4.30, says Dow Jones. After SembMarine’s Jurong Shipyard yesterday secures US$384 million ($500.6 million) of contracts for 2 premium jack-up rigs, options for another 4 from Seadrill, house says this brings YTD order wins to about $2.3 billion. 



Upgrades non-Petrobras order assumptions to $3.5 billion for 2010, $4 billion for 2011-12; keeps Petrobras order expectation of about $6.9 billion for 2011, raises earnings estimate by 10% for FY12. 

“Recent order momentum is an indicator of revived interest in the rig and drillship market.” Tips catalysts from stronger than expected non-Petrobras orders, margin expansion. 

Shares last +2.2% at $4.60. 

No comments:

Post a Comment