Home THE DAILY EDGE Business Citi cuts Sembcorp Marine to “hold” from “buy”
Citi cuts Sembcorp Marine to “hold” from “buy”

Tags: Citi | Sembcorp Marine

Written by Reuters   
Friday, 19 November 2010 10:45
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Citigroup has downgraded Singapore’s Sembcorp Marine (SCMN.SI), the world’s second-largest rig-builder, to “hold” from “buy” but raised its target price to $5.60 from $4.60.

STATEMENT:
Citi has downgraded its rating for Sembcorp Marine as its valuations have become less attractive after its strong rally.
 
“Our earlier upgrade to buy was premised on orderbook returning, and we believe share prices at this level have already factored in strong wins,” said Citi in a report.
 
However, Citi has raised its 2010 earnings per share estimate for Sembcorp Marine by 21% to S$0.37 and by 9% to S$0.28 for next year, citing faster delivery schedule and strong third quarter earnings.
 
The 2010 earnings include a one-time gain from the settlement of a longstanding dispute over foreign exchange losses.
 
Shares of Sembcorp Marine rose 0.59% to $5.10 at 0228 GMT, and have gained about 38% so far this year.
 
 
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Citi cuts Sembcorp Marine to “hold” from “buy”
Friday, 19 November 2010

Last Updated on Friday, 19 November 2010 10:53