Keppel Corp: Goldman upgrades to Buy from neutral, raises target to $13 from $11. Raises new order assumptions, upgrades 2010-12 EPS estimates by 8% (now 11% above consensus). Says Keppel’s leading Spore yard status makes it the best-placed to benefit from this upturn. Cites 3 reasons to be positive:
1) expects Keppel to win more orders than peers given its strong track record, more geographically-diversified presence and wider product portfolio;…
2) expects Keppel to win slightly higher quality orders than peers, with better payment terms and more repeat orders; 3) says the market is over-penalizing Keppel’s conglomerate structure, and may be due for a rerating.
Stock +1.4% at $11.50, just shy of the 2-yr high of $11.56 made earlier this wk.
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