Sembcorp Marine held at 'Neutral' with lower target price of $3.60 by Credit Suisse

Stock Name: Sembcorp Marine
Company Name: SEMBCORP MARINE LTD

Research House: Credit Suisse

Price Call: HOLD

Target Price: 3.60

SINGAPORE (Nov 6): Credit Suisse is maintaining its "neutral" recommendation for Sembcorp Marine with a lower target price of $3.60 as it cuts the yard's 2015-16 EPS estimates by 5-9% on lower margin assumptions.

In 9M14, Sembcorp Marine's net profit of $386 million came in below expectations, representing 67% of consensus' FY14 forecast. This was largely driven by a decline in operating margin to 10.0% in 3Q14 from 11.5% in 2Q14, as a change in accounting policy led to a negative mix effect.