O&M: DMG has sector Report. Remains O/W on sector, noting that Deepwater drilling permits positive, and still-high enquiries suggest more orders to come. Stock prices corrrction of 6-8% is an opportunity to accumulate. Expect record FY10 O&M profit and margin expansion and increased visibility on orderbook expansion; potential $5b jobs on offer and encouraging news on deepwater drilling paving way for new orders…..
House have Buy Calls on Sembcorp Ind (TP: $6.15), KepCorp (TP: $13.94) and SembMarine (TP: $5.95), in order of most upside potential.