DBS Vickers keeps Sembcorp Marine (S51.SG) at Buy and raises the target price to $6.08 from $5.48 to factor in the rig-builder’s latest US$400 million ($525 million) contract win in its valuations.
The house says the new orders from Noble Corp. (NE), which has also awarded options to build four more rigs for another US$800 million, bode well for SembMarine; “this design should strengthen SembMarine’s niche and track record for premium jack-ups operating in a harsh water environment, leading to more contract wins of similar design.”
Expects SembMarine to get more than US$4.5 billion worth of orders next year. Shares are +1.8% at $5.08.
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