Keppel Corp: Keppel’s stock has slid to a point where its O&M division is valued below zero. It trades below the book value of its property division alone. RHB's SOP-based TP of $8.08 (from $10.00, 67% upside) includes a 35% discount to book value of the property arm.
RHB further notes that the stock has displayed c.90% correlation with oil prices, although O&M’s share of the group’s book value/FY16F earnings is only 16%/40%. RHB thinks this rout has gone too far.
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