Kep Corp - Keppel Corp target raised to $12.50 by Deutsche Bank

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: Deutsche Bank

Deutsche Bank lifts Keppel Corp. (BN4.SG) target price to $12.50 from $11.45 after increasing FY10-12 earnings estimates by 7.5%, 7.1%, 6.8% respectively to factor in higher margin assumptions for offshore & marine unit; “previously outsourced work is now performed by their own yards, efficiencies have continued to increase and input costs have declined.”



Keeps Buy call. Says rig-builder in strong position to benefit from increasing order momentum driven by replacements of jack-up fleet, strong demand for high-specification rigs.



Shares +0.4% at $10.92.