O&M: DBS issues bullish note on rigbuilders, China yards performing better than rigbuilders in 2010, now prefers offshore yards to China shipbuilders, top Buy picks Keppel Corp TP$12.50, SembMarine TP $6.08 and Cosco Corp TP $2.76. Other picks include JES, Buy at TP $0.50 and YZJ, Buy at TP $2.60…
Catalysts for offshore yards are 1) strong demand for jack ups, 2) penetration into drillship mkt and wind farm installation jack-ups carving new niche and 3) potential award for Petrobras tenders in 1Q2011. Sees potential tripling of orders this yr vs <33% growth in China shipbuilders….
DBS’s view in line with Nomura and Deutsche, reiterate that both KeppelCorp and SembMarine were 2011 top picks for most houses.
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