Thursday, February 24, 2011

SembMarine up on better-than-expected Q4 result

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Research House: DMG

Shares of Sembcorp Marine (SCMN.SI), the world’s second largest rig builder, rose as much as 2.7% on Thursday after it posted better-than-expected earnings for its fourth quarter.

At 9:37 a.m., Sembcorp Marine shares were up 2.1% at $5.32 on a volume of 3 million shares.

Sembcorp Marine reported a 19.5% fall in fourth quarter net profit to $239.4 million on lower sales, but the result was ahead of average analyst forecasts.

“We are positive on the outlook of the high-specification jack-up market, and management revealed that enquiries are still strong,” OCBC Investment Research said in a report.

The brokerage maintained its buy rating and $6.17 target price on Sembcorp Marine.

DMG & Partners upgraded Sembcorp Marine to buy from neutral and raised its target price to $5.95 from $5.30.


 

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