Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Research House: CLSA
But it says it expects Sembcorp Marine to gain $7.6 billion in new offshore and marine orders for 2011.
Company Name: SEMBCORP MARINE LTD
Research House: CLSA
CLSA downgrades Sembcorp Marine (S51.SG) to Sell from Outperform as it expects the company’s profits to fall 26% in 2011 to $611 million, before growing 3% in 2012, because of tighter margins.
But it says it expects Sembcorp Marine to gain $7.6 billion in new offshore and marine orders for 2011.
“Thinner margins are likely after a drop in new-build prices and intense competition for Petrobras orders,” says CLSA, adding that the stock is fully valued at 18.3X PE in 2011 vs its peers.
The house cuts the company’s target price by 5% to $5.00. Sembcorp Marine is down 0.4% at $5.39.
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