Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
DMG & Partners Securities in a Jan 9 research report says: "Management was particularly upbeat on new order prospects, and believes SMM will see higher fresh order wins in 2012.
"SMM also discussed its commitment to build a strong presence in Brazil and is confident to win a fair amount of work from Petrobras. SMM is experiencing strong order enquiries for newbuild jackup rigs, semisub rigs and conversion work. Management is confident to win more than $5 billion new orders in 2012 ($3.7 billion in 2011), ahead of our forecast of $4.5 billion.
"Unchanged SOTP-derived target price of $5.25. We value the stock using: (1) 15x core shipyard earnings; (2) adjust for FY11 estimated net cash; (3) 30% stake in Cosco Shipyard Group at 8x P/E; and (4) Cosco Corp at 85 cents. MAINTAIN BUY."
Company Name: SEMBCORP MARINE LTD
| Research House: DMG | Price Call: BUY | Target Price: 5.25 |
DMG & Partners Securities in a Jan 9 research report says: "Management was particularly upbeat on new order prospects, and believes SMM will see higher fresh order wins in 2012.
"SMM also discussed its commitment to build a strong presence in Brazil and is confident to win a fair amount of work from Petrobras. SMM is experiencing strong order enquiries for newbuild jackup rigs, semisub rigs and conversion work. Management is confident to win more than $5 billion new orders in 2012 ($3.7 billion in 2011), ahead of our forecast of $4.5 billion.
"Unchanged SOTP-derived target price of $5.25. We value the stock using: (1) 15x core shipyard earnings; (2) adjust for FY11 estimated net cash; (3) 30% stake in Cosco Shipyard Group at 8x P/E; and (4) Cosco Corp at 85 cents. MAINTAIN BUY."
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