Company Name: KEPPEL CORPORATION LIMITED
| Research House: DMG | Price Call: BUY | Target Price: 13.80 |
Maybank Kim Eng raised its target price on Singapore’s Keppel Corp to $12.90 from $12.50 and maintained
its buy rating after the world’s largest rig builder reported better-than-expected earnings for its second quarter.
Maybank raised its 2012 fiscal year net profit estimate by 5% to reflect higher property and investment income.
Keppel shares were down 0.6% at $11.17. The stock ended 1.6% higher on Thursday ahead of the results.
Keppel reported a 35% rise in net profit and the results came ahead of market expectations.
While Keppel’s operating margin for offshore and marine stood at 13.2% in the quarter, Maybank remained optimistic that full-year margins would come within its expectation of 14-16%.
“A tight rig market with rising utilisation rates and an aging rig profile would continue to support the rig-building business,” Maybank said.
DMG & Partners Securities raised its target price on Keppel Corp to $13.80 from $13.60, after increasing its earnings per share estimate by 15% for 2012 fiscal year and by 1% for 2013. It maintained its buy rating.
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