SembMarine

SembMarine: Nomura reaffirm Buy, TP $6.08 from $4.50, Earnings upgraded to assume more positive orderbook outlook, better margins. Raise FY12F/13F earnings estimates by 10%/9%, to account for an improved new order outlook and offshore margins.

Maintain optimistic view on the SG offshore rig builders. With oil trading at well within capex positive levels, expect new order pace to pick up, as strong industry tailwinds rekindle demand for offshore exploration & production equipment required for new offshore field discoveries.

Catalyst are Deepwater units & Petrobras. Counter trades at FY12/13F PE of 18x and 17x (at the mid-end of the historical PE band of 6x and 28x) with dividend yields at 3.5% and 3.7%.