Sembcorp Marine cut to "reduce", target cut to $2.82 by CIMB

Stock Name: Sembcorp Marine
Company Name: SEMBCORP MARINE LTD

Research House: CIMB

Price Call: SELL

Target Price: 2.82

SINGAPORE (March 30): CIMB has downgraded Sembcorp Marine to "reduce" from "add", saying the rig builder is facing the beginning of an "order drought".

It also cut its price target from $3.39 to $2.82, based on 11 times projected 2016 earnings, after lowering its 2015 to 2017 earnings per share estimates by 6% to 21% to factor in fewer orders.

CIMB analyst Lim Siew Khee now expects SembMarine to secure just $1.2 billion worth of new orders this year, down from an earlier forecast of $2 billion.

SembMarine kept at 'neutral' with $3.10 target by OSK DMG

Stock Name: Sembcorp Marine
Company Name: SEMBCORP MARINE LTD

Research House: OSK-DMG

Price Call: HOLD

Target Price: 3.10

SINGAPORE(Feb 17): OSK DMG has maintained its neutral call on global marine and offshoring group Sembcorp Marine with a lower target price of $3.10 (from $3.80) based on its sum of parts (SOP), with the change largely driven by rising debts.

"The swing to a net debt position of 21.2% was a negative surprise, with the company having spend $1.4 billion on two new yards in the last two years," said OSK DMG analysts Lee Yue Jer and Jesalyn Wong in a note today.

Sembcorp Marine target cut 8.3% to $3.30 by Credit Suisse

Stock Name: Sembcorp Marine
Company Name: SEMBCORP MARINE LTD

Research House: Credit Suisse

Price Call: HOLD

Target Price: 3.30

SINGAPORE (Feb 13): Credit Suisse has cut its price target for Sembcorp Marine from $3.60 to $3.30, based on 12 times projected 2015 earnings, after lowering its earnings per shares estimates for this year by 8% and for 2016 by 15% to reflect an expected drop in business.

As it stands, the company has yet to receive payment since November last year of $70 million to $80 million for seven drillships that it is building for Sete Brasil, a company linked to Brazilian oil giant Petrobras.

Sembmarine kept at 'hold' by OCBC with $2.99 fair value

Stock Name: Sembcorp Marine
Company Name: SEMBCORP MARINE LTD

Research House: OCBC

Price Call: HOLD

Target Price: 2.99

SINGAPORE (Feb 10): OCBC Investment Research is maintaining its "hold" recommendation on Sembcorp Marine with a $2.99 fair value.

Although SembMarine has refuted claims that it had paid bribes to Petrobras directors and politicians, the scandal plaguing Petrobras are unlikely to be over soon and are likely to continue to cast a pall over SembMarine.

In a Feb 10 report by Low Pei Han and Carey Wong, the analysts say SembMarine stands to lose more from negative developments at Petrobras compared to Keppel Corp.

Sembcorp Marine cut to "underperform", target cut to $2.68 by Daiwa

Stock Name: Sembcorp Marine
Company Name: SEMBCORP MARINE LTD

Research House: Daiwa

Price Call: SELL

Target Price: 2.68

SINGAPORE (Feb 3): Daiwa has downgraded Sembcorp Marine to "underperform" from "hold" and cut its price target from $3.81 to $2.68, which is based on 10.8 times projected 2015 earnings.

The changes incorporate a 2% to 14% cut in its earnings estimates for 2014 to 2016 to factor in fewer new orders.

"A prolonged low oil-price environment, coupled with a saturated drilling industry, could well be the perfect storm that heralds a new era of depressed MODU (mobile offshore drilling unit) orders over the next two to three years," Daiwa analyst Royston Tan wrote in a note.

Sembcorp Marine cut to "sell", target cut to $2.65 by Maybank Kim Eng

Stock Name: Sembcorp Marine
Company Name: SEMBCORP MARINE LTD

Research House: Maybank Kim Eng

Price Call: SELL

Target Price: 2.65

Sembcorp Marine cut to "sell", target cut to $2.65 by Maybank Kim Eng

(MORE TO FOLLOW)

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.

Sembcorp Marine raised to "add" from "neutral" by CIMB

Stock Name: Sembcorp Marine
Company Name: SEMBCORP MARINE LTD

Research House: CIMB

Price Call: BUY

Target Price: 4.11

CIMB has upgraded its rating on Sembcorp Marine ( Financial Dashboard) to “add” from “neutral”, saying the stock’s 18% year-to-date fall “is overly done”.

One of the main reasons for the decline has been multiple schedule shifts for SembMarine’s first drillship to be sailed off to Brazil, according to CIMB analyst Lim Siew Khee.

“Now that the drillship is finally on its way to Brazil, we believe investors should have less concern about SembMarine’s execution and delivery capability,” Lim said in a note.

“With the drillship finally out of its Jurong yard, we think SembMarine has crossed a new hurdle and could alleviate market fears of further delays.”

Despite upgrading her rating, Lim has cut her price target from $4.30 to $4.11, based on 13.5 times earnings, a 10% discount to the stock’s long-term average of 15 times.

Shares of SembMarine traded at $3.62, up 1.1%, at 0343 GMT.