Keppel

Keppel: Downgraded to Sell at CLSA due to deteriorating macro environment and downgrade for Keppel Land. Nevertheless, the house still thinks Keppel Corp remains the best in class. Broadly, lower oil prices, demand-supply imbalance in rig market, and stiff competition from Korean and Chinese yards imply that order wins will decline over the next 2 years which will in turn drive a valuation de-rating. CLSA decreases TP from $11.35 to $9.34