Thursday, April 7, 2011

Phillip ups Semcorp Marine to $6.60, keeps buy

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Research House: Phillip Securities

Phillip Securities Research has raised its target price for Sembcorp Marine (SCMN.SI), the world’s second largest oil rig builder, to $6.60 from $5.69 and kept its buy rating.

Phillip said it expects Sembcorp Marine’s share price to see a re-rating, helped by a strong rig renewal cycle, robust oil prices and an increased preference for premium rigs.
Sembcorp Marine, which recently secured two contracts worth $427.6 million to build a pair of jackup rigs, has seen order wins of $1.5 billion so far this year, lifting its outstanding order book to about $5.9 billion, Phillip said.
The brokerage said it expects Sembcorp Marine to see earnings per share of 36.3 cents this year, down from 41.4 cents last year. 
At 9:32 a.m., Sembcorp Marine shares were 0.33% lower at $5.97, but have gained more than 11% since the start of the year.

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