SembCorp Marine (S51.SG) remains +0.4% at $4.97, after announcing US$195 million ($254 million) rig contract, says Dow Jones.

The modest gains in thin volume in line with peers Keppel (BN4.SG), flat at $10.70, SembCorp Industries (U96.SG), +0.6% at $4.87, as three stocks’ sharp run up since early October likely prices in rosier outlook for orders.

CIMB, which keeps SembMarine at Outperform, $5.75 target, says SMM preferred sector pick for pure O&M exposure, potential for further consensus earnings upgrades for FY11-FY12.

Broker says while Petrobras mega-deals still “big kicker” to watch for sector, “we are seeing a return of other contractors with more projects to be awarded soon.”

Goldman Sachs, which rates SMM at Buy, $5.75 target, says rig order from US operator Transocean — largest global driller. Adds, orders from US operators — which own some of oldest, least competitive global fleet — could be significant industry catalyst, especially if they embark on replacement cycle.

Orderbook suggests SMM unlikely to pass $5 today.