DMG ups Keppel Corp to $13.80 vs $12.77

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: DMG

DMG & Partners Research has raised its target price on Keppel Corp (KPLM.SI), the world’s largest oil rig builder, to $13.80 from $12.77 and maintained its buy rating.

Keppel Corp has secured an order for four newbuild jackup oil rigs from Oslo-listed S.D. Standard Drilling Plc (SDSD.OL) for US$772 million that lifted its year-to-date order wins to more than $6.4 billion. 

DMG estimates Keppel’s current outstanding orderbook to be about $9.5 billion, with deliveries extending to June 2014.

Keppel has won 19 new orders year-to-date, and DMG has raised its order assumption for Keppel to $9 billion in 2011, against a previous estimate of $6.5 billion, with nine outstanding jackup options valued at about US$2.7 billion ($3.37 million).

At 11:03 GMT, shares of Keppel Corp were down 1.2% to US$11.50 on a volume of 2 million shares. The stock has risen about 12% since the start of the year.