Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: CLSA
But the brokerage said it expects Keppel Corp to get new orders worth $8.7 billion in 2011, compared with $3.2 billion last year, as more companies replace their jack-up rigs and demand from customers remains robust.
Company Name: KEPPEL CORPORATION LIMITED
Research House: CLSA
CLSA Asia Pacific has downgraded Keppel Corp (KPLM.SI), the world’s largest oil rig builder, to outperform from buy, but raised its target price by 22% to $13.
CLSA said it downgraded Keppel Corp because there is only 10% upside to its target price and the stock is trading at 16.4 times price-earnings ratio for the 2011 financial year.
But the brokerage said it expects Keppel Corp to get new orders worth $8.7 billion in 2011, compared with $3.2 billion last year, as more companies replace their jack-up rigs and demand from customers remains robust.
CLSA added that strong residential sales will be the main earnings drivers as Keppel Land (KLAN.SI), the property arm of Keppel Corp, sells the luxury Reflections project in Singapore at healthy margins and continues selling homes in China and Vietnam.
The capacity expansion at the Keppel Merlimau Cogen power plant on Singapore’s Jurong Island and the new contract for an energy-from-waste project in the United Kingdom will also drive growth in Keppel Corp’s infrastructure business, CLSA said.
At 10:58 a.m., Keppel Corp shares were down 0.2% at $11.80 on a volume of 803,000 shares.
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