Keppel Corp

Keppel Corp: Macquarie upgrades back to Outperform from neutral, after the recent spate of order inflows , and on the back of an 11% correction in stock price over the past five months vs -2.2% in the STI . The house now expects FY13e orders of $6b from $5b, on expectations of a surge in semi-sub demand in 2H13. KEP is now trading at 13x FY14e P/E and 1.8x FY14e P/B, which Macquarie views as undemanding given the strong earnings visibility until 2015. The house upgrades TP by 4% to $11.80.