Keppel Corp: one of the STI component top gainers, +2.1% at $11.84, with its peer SMM +1.9% at $5.50, higher amid broad market gains but also as the two rig builders are seen as beneficiaries of elevated oil prices, which will likely hasten the return of E&P activity and thus orders…
OCBC notes that going forward, the market is likely to 1) monitor the resumption of activities in the Gulf of Mexico, and 2) track the progress of local rigbuilders in penetrating the drillship market. Says says Keppel, rated Buy with $13.26 TP and SMM, also Buy-rated with $6.17 TP, are its preferred picks in the sector due to the improving rig market, with possible catalysts from Brazil's rig tender; and strong balance sheets to weather unexpected events.
No comments:
Post a Comment