Monday, February 14, 2011

Kep Corp - Keppel Corp rises on Brazil contract wins

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

Shares of Keppel Corp (KPLM.SI), the world’s biggest oil rig builder, rose as much as 2.2% on Monday after it said its unit, Keppel FELS Brazil, had secured two contracts with a total value of 500 million Brazilian real ($230 million).

At 10:27 a.m., Keppel Corp shares were up 2% at $11.38 on a volume of 2.8 million shares.

“The share price rose because of the contract wins and also the market rebound due to the improving situation in Egypt,” said a local trader.

CIMB Research, which maintained its outperform rating and $14.10 target price on Keppel Corp, said the latest contracts brought the firm’s year-to-date order wins to nearly $2 billion ($1.6 billion).

“We keep our $6 billion new orders target for 2011 and continue to anticipate stock catalysts from further orders for rigs and offshore production units,” CIMB Research said in a report.


 

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