Sembcorp Marine (S51.SG) off 1.0% at $4.00, mirroring modest retreat in broad market, notes Dow Jones.

But pullback not accompanied by strong volume, as investors still hopeful company will secure some contracts from Petrobras’ 28-rig tender.

 

“We believe Sembcorp Marine’s current share price does not reflect the possibility of any Petrobras contract wins, which is a potential price catalyst,” says Bank of America-Merrill Lynch, which has Buy call with $5.82 target. Both SembMarine, Keppel Corp. (BN4.SG) expect Petrobras to disclose tender results this month.

 

SembMarine’s current orderbook at $4.3 billion, stretching until end-2012.

 

“There is a chance that it could miss its ex-Brazil new orders guidance” of $2–$3 billion for this year, says Morgan Stanley, which has Equalweight call with $3.80 target; “it would need more order wins to replenish its depleting orderbook.”

 

Support at last week’s $3.92 low.