Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Company Name: SEMBCORP MARINE LTD
| Research House: Daiwa | Price Call: BUY | Target Price: 6.05 |
Daiwa Capital Markets has raised its target price on Singapore’s Sembcorp Marine (SCMN.SI), the world’s second-largest oil rig builder, to $6.05 from $5.90 and maintained its outperform rating.
Daiwa said Sembcorp Marine’s year-to-date new contract wins were $1.6 billion, trailing its closest competitor, Singapore’s Keppel Corp (KPLM.SI), at $6.6 billion.
Daiwa said Sembcorp Marine’s year-to-date new contract wins were $1.6 billion, trailing its closest competitor, Singapore’s Keppel Corp (KPLM.SI), at $6.6 billion.
However, Daiwa said Sembcorp Marine has eight options for new-build rigs worth around $1.6 billion granted to customers who have previously placed orders, and it expects most of these options to be exercised in 2011.
The exercise of the options would put Sembcorp Marine on track to meet the 2011 order win forecast of $5 billion, Daiwa said, adding that share price catalysts are new contracts secured and the return of semi-submersibles orders to the market.
At 9:41 a.m., Sembcorp Marine shares were flat at $5.33 on a volume of 177,000 shares. The stock is down around 0.7% so far this year, compared with a rise of around 10% for Keppel Corp shares.
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