Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
The firm announced the order win early on Monday.
Company Name: SEMBCORP MARINE LTD
| Research House: CIMB | Price Call: BUY | Target Price: 6.28 |
Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
| Research House: Kim Eng | Price Call: BUY | Target Price: 5.58 |
Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
| Research House: DMG | Price Call: BUY | Target Price: 6.14 |
Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
| Research House: DBS Vickers | Price Call: BUY | Target Price: 5.75 |
Several brokers raised their target prices on Singapore’s Sembcorp Marine, the world’s second-largest rig builder, after the company won a $792.5 million ($989.3 million) contract to build a drillship for Sete Brasil.
By 10:57 a.m., SembMarine shares were up 1.2% at $5.02. The stock has surged around 31% so far this year.
By 10:57 a.m., SembMarine shares were up 1.2% at $5.02. The stock has surged around 31% so far this year.
The firm announced the order win early on Monday.
Sete Brasil is a company created by a group of Brazilian banks and fund to build rigs for state-run oil firm Petrobras SA.
CIMB raised its target on SembMarine to $6.28 from $3.30 and upgraded the stock to outperform from underperform. Kim Eng increased its target to $5.58 from S$4.95 and kept its buy rating.
DBS Vickers lifted its target to $5.75 from $4.60 and maintained buy. DMG & Partners raised the target to $6.14 from $5.25 and kept buy.
According to Thomson Reuters’ StarMine, 20 out of 26 analysts covering SembMarine stock have a buy or strong buy rating on the company.
CIMB raised its total order target for SembMarine to $8 billion for 2012 from $6 billion in view of more-than-expected drillships from Sete Brasil. CIMB expects SembMarine to win at least six drillships from Sete Brasil.
The Brazilian drillship is slated to yield operating margins of about 6-8%, CIMB said. It also said SembMarine’s share price was supported by high oil prices.
DMG & Partners said the outlook for offshore and marine activities remains robust as Petrobras rig contracts are finally materialising and the tightening supply of rigs could propel asset owners to invest more in new rigs.
The key downside risks are execution risks such as project delays and customer defaults, as well as a sharp drop in crude oil prices, DMG noted.
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