Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: OCBC
A noteworthy development since late last year must have been the resurgence of rig orders. Going forward, the market is likely to 1) monitor the resumption of activities in the Gulf of Mexico, and 2) track the progress of local rigbuilders in penetrating the drillship market, says OCBC.
It says Keppel, rated Buy with a $13.26 fair value and SembMarine, also Buy-rated with a $6.17 fair value, are its preferred picks in the sector due to “the improving rig market; possible catalysts from Brazil’s rig tender; and strong balance sheets to weather unexpected events.”
Company Name: KEPPEL CORPORATION LIMITED
Research House: OCBC
Keppel Corp (BN4.SG) leads the STI in percentage gains, +2.1% at $11.84, with its peer SembCorp Marine (S51.SG) +1.5% at $5.48, higher amid broad market gains but also as the two rig builders are seen as beneficiaries of elevated oil prices, which will likely hasten the return of E&P activity and thus orders.
A noteworthy development since late last year must have been the resurgence of rig orders. Going forward, the market is likely to 1) monitor the resumption of activities in the Gulf of Mexico, and 2) track the progress of local rigbuilders in penetrating the drillship market, says OCBC.
It says Keppel, rated Buy with a $13.26 fair value and SembMarine, also Buy-rated with a $6.17 fair value, are its preferred picks in the sector due to “the improving rig market; possible catalysts from Brazil’s rig tender; and strong balance sheets to weather unexpected events.”
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