Citigroup cut its target price on rigbuilder Sembcorp Marine to $5.40 from $6.10 and kept its ‘buy’ rating, citing smaller revenue recognition and lower margin assumptions.
By 10:59 a.m., Sembcorp Marine shares were flat at $4.39 and have risen 15% since the start of the year, compared with the Straits Times Index’s 13.4% gain.
Citi cut its 2012-2013 earnings per share estimates for Sembcorp Marine by 4-11%, but raised its 2014 estimates by 6% to account for higher repair contributions and drillship sales.
The brokerage expects Sembcorp Marine’s earnings to bottom this year and see a strong rebound in 2013-2014, adding that it was “upbeat on the exploration and production cycle and believe it will continue into 2013, underpinned by demand for broad mix of products.”
No comments:
Post a Comment