Sembcorp Industries cut to "hold", target cut to $4.57 by CIMB

Stock Name: Sembcorp Ind
Company Name: SEMBCORP INDUSTRIES LTD

Research House: CIMB

Price Call: HOLD

Target Price: 4.57

SINGAPORE (Feb 18): CIMB has downgraded Sembcorp Industries to "hold" from "add" and cut its price target to $4.57 from $5.85 after lowering its earnings per share estimates for 2015 by 4% and for 2016 by 7%.

The outlook for Sembcorp's business in Singapore has worsened since 4Q2014, given the sharp falls in spark spreads and prices of high-sulphur fuel oil, according to CIMB analyst Lim Siew Khee.

"Utilities earnings could see a consecutive y-o-y dip in FY15 as the gap in Singapore is too big to fill," she wrote in a note today.