Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Research House: DBS Vickers
On the other hand, it says shipbuilding could be challenging beyond 2012 on weaker order flows and possible margin compression.
Company Name: SEMBCORP MARINE LTD
Research House: DBS Vickers
DBS Vickers Research reiterates its preference for rigbuilders over shipbuilders; “we expect the strong momentum in order flows for rigbuilders since 4Q2010 to be sustained, anchored by a fleet renewal cycle and greater E&P spending. This will lead to increased earnings visibility, and EBIT margins are also expected to normalize around the mid-teens.”
On the other hand, it says shipbuilding could be challenging beyond 2012 on weaker order flows and possible margin compression.
The house maintains its Buy calls on Keppel Corp. (BN4.SG) with a $14.63 target price, on SembMarine (S51.SG) with a $6.63 target and on Cosco Corp. (F83.SG) with a $3.16 target.
KepCorp is down 1.0% at $11.88, SMM is off 1.2% at $5.70 and Cosco is flat at $2.00. The house pegs Cosco’s near-term support at current levels, with resistance in the $2.10-$2.15 area.
KepCorp is down 1.0% at $11.88, SMM is off 1.2% at $5.70 and Cosco is flat at $2.00. The house pegs Cosco’s near-term support at current levels, with resistance in the $2.10-$2.15 area.
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