Kep Corp - Citi ups rigbuilders Sembcorp Marine, Keppel

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: Citigroup

Citigroup has upgraded rig builder Sembcorp Marine (SCMN.SI) to buy from hold and raised its target price to $6.20 from $5.60.

It also increased its target price for Keppel Corp (KPLM.SI) to $14.45 from $12.80, and kept its buy rating. 

Citi has raised its earnings estimates for Sembcorp Marine by 34% in 2011 and 14% in 2012, citing strong order book momentum and higher margins.

 

“Sembcorp has underperformed Keppel year-to-date and over the past 3-month period, and we view its recent correction as a good buying opportunity,” said Citi in a report.

The brokerage has also raised its earnings estimates for Keppel by 7-12% from 2011-2012, as it expects the firm to secure more orders over the next two years.

At 10:59 a.m., shares of Sembcorp Marine were 0.19% higher at $5.16, but have lost 3.9% so far this year.

Keppel shares were 0.88% lower at $11.24, and have fallen 0.7% since the start of the year.