Semb Corp - Citi ups targets for Keppel, Sembcorp Industries

Stock Name: Semb Corp
Company Name: SEMBCORP INDUSTRIES LTD
Research House: Citigroup

Citigroup has raised its target prices for rigbuilders Keppel Corp (KPLM.SI) and Sembcorp Industries (SCIL.SI) and kept its "buy" ratings on both firms.



Citi expects Keppel to hit $12.80, from a previous target of $11.10, while it says Sembcorp Industries can rise to $5.60 from $4.73.

STATEMENT:

Citi has raised its 2010 earnings per share estimate for Keppel by 2% due to higher offshore and marine revenue, and by 4% in 2011 because of higher expected margins.

“We remain upbeat on the offshore and marine sector, and recent conversations with various industry players suggest that the current outlook is significantly stronger compared to early 2010," said Citi in a report.

The brokerage has also raised its earnings per share estimate for Sembcorp Industries by 17% this year due to stronger earnings outlook for its offshore and marine arm Sembcorp Marine.

At 0250 GMT, shares of Keppel were flat at $10.88, while Sembcorp Industries rose 1.2% to $4.91. Both have gained 32% so far this year.