Keppel Corp

Keppel Corp: CS upgraded Company to OUTPERFORM, raising its TP to $13.70. CS noted that O&M margins should recover in 2013, driven by its record delivery of 20 jackup rigs, most of which are based on established designs; Also, a potential infrastructure turnaround as Group's property should see continued contribution from Reflections. On its wastewater treatment plant in Qatar, CS expect a turnaround in profitability in infrastructure in 2013 should no further provisions be taken. In addition, the completion of Keppel Merlimau Cogen 800 MW expansion in mid 2013 could contribute a further S$90 mn of profit by FY14.