Keppel T&T - Data centre takes centre stage

Stock Name: KepT&T
Company Name: KEPPEL TELE & TRAN

Research House: CIMB

Price Call: HOLD

Target Price: 1.22

Target S$1.22

1Q12 core earnings hit a record with the help of a strong data-centre performance. However, we believe near-term positives are in the price at 9.2x CY13 P/E (vs. 10x historical five year historical average). 1Q12 core net profit (S$14.4m) meets expectations at 20% of our forecast and consensus. We keep our earnings estimates largely intact and SOP-based target price. Maintain Neutral.

Source: CIMB Daybreak - 18 April 2012, Full PDF Report