Monday, September 27, 2010

SembCorp Marine

SembCorp Marine: Good mix of views from the Street, with wide range of targets from $2.80-4.75. Current weakness in SMM likely due to delays in the anticipated award of the Petrobras contracts (now slated for Nov). The longer this drags, the more bargaining power Petrobras will have, given that the order backlogs of the Singapore yards are running thin...

Longer term however, SMM, Keppel still remain well-placed for the tenders given their long standing relationship with Petrobras.

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