Investors are urged to accumulate Singapore-listed marine, property, and infrastructure company Keppel Corporation’s (Keppel) stock, which is riding on a short-term momentum.
Malaysia-headquartered CIMB Bank analyst Lim Siew Khee said that Keppel’s share price will continue to inch up in the near term. She backed the predicted upward climb of Keppel’s share prices using the oil price rally which is on the cusp of an upward “W” path as US shale output data stay muted.
Lim set up a target price of SGD9.97 (USD7.36) per share, applying a 5% premium to its revalued net asset valuation (RNAV) valuation to ride on the short-term momentum. Keppel’s stock is now trading at around SGD9.44 per share.
She also eases market concerns on the cancellation of Keppel’s Sete Brasil project, stating that Keppel’s offshore and marine division is in talk with Sete Brasil to slow down construction, pending the finalisation of its funding issues.
Meanwhile, Lim is upbeat on the development of Keppel’s property division, Keppel Land, which in just the first three months of 2015, had sold over 720 homes in Asia, of which 300 were in China and another 300 units in Vietnam.
In addition, Keppel Land has planned to launch about 3,600 residential units in 2015 from its pipeline of 70,000 homes across Asia. These include projects such as West Vista in Jakarta, Indonesia; Estella Heights in Ho Chi Minh City, Vietnam; and Central Park City in Wuxi, China.
This post was sourced from IHS Maritime 360: View the original article here.
