Sembcorp Industries lowered to 'hold', target cut to $4.72 by OCBC

Stock Name: Sembcorp Ind
Company Name: SEMBCORP INDUSTRIES LTD

Research House: OCBC

Price Call: HOLD

Target Price: 4.72

SINGAPORE (May 8): OCBC Investment Research has downgraded Sembcorp Industries to "hold" from "buy" after lowering its sum-of-parts price target to $4.72 from $4.84.

The revised target reflects a recent cut in its fair-value estimate for Sembcorp Marine to $2.77 from $2.95.

This year is expected to remain challenging for Sembcorp Industries' Singapore energy business as competition will remain intense, according to OCBC analyst Low Pei Han.

The group's offshore and marine business will also be under pressure as orders decline and uncertainty in Brazil lingers.