Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Phillip Securities Research in an Oct 4 research report says: "Keppel Corp announced last evening that it has secured a US$199 million order for a KFELS B Class jack up rig from Safin Gulf FZCO. Keppel Corp share price has fallen 38% since our last report, in tandem with weak market conditions.
"Although we lower our expectations on future rig order wins due to the worsening macroeconomic conditions, we believe that this might already been amply reflected in Keppel's share price performance and unless the macroeconomic situation deteriorates further, lower prices should not be warranted.
"We also think that Keppel's strong orderbook and good dividend yield (approx. 5%) will provide support to its share price at current levels. At our target price of $8.50, Keppel will be trading at approximately 12x FY12e EPS. MAINTAIN HOLD."
Company Name: KEPPEL CORPORATION LIMITED
| Research House: Phillip Securities | Price Call: HOLD | Target Price: 8.50 |
Phillip Securities Research in an Oct 4 research report says: "Keppel Corp announced last evening that it has secured a US$199 million order for a KFELS B Class jack up rig from Safin Gulf FZCO. Keppel Corp share price has fallen 38% since our last report, in tandem with weak market conditions.
"Although we lower our expectations on future rig order wins due to the worsening macroeconomic conditions, we believe that this might already been amply reflected in Keppel's share price performance and unless the macroeconomic situation deteriorates further, lower prices should not be warranted.
"We also think that Keppel's strong orderbook and good dividend yield (approx. 5%) will provide support to its share price at current levels. At our target price of $8.50, Keppel will be trading at approximately 12x FY12e EPS. MAINTAIN HOLD."
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