SembMarine: Citi maintains Buy with $4.76 TP. House has takeaways from Meetings with Mgt. Note that Mgt was upbeat and believes the strength of the cycle remains intact despite concerns over slowing economic growth.
SMM is particularly positive on the deep-water segment and opined that recent rebound in day rates has improved prospects significantly. Possibility of a stronger-than-expected orderbook scenario in 2012 is not ruled out, underpinned by fixed platforms, FPSOs and semi-subs.
Continue to like SMM for its strong execution and growing footprint in the value chain (rigs/FPSOs/fixed platform). SMM is currently trading below mid-cycle valuations, believe growing demand for production equipment and the on-going rig replacement cycle will \continue to support sector fundamentals.
No comments:
Post a Comment