Keppel Corp.(BN4.SG) +0.4% at $10.82 on latest boost to offshore & marine orderbook, but struggling to head higher amid current soft market conditions. 52-week high of $11.06 expected as resistance. Despite subdued price reaction, analysts say prospects for Keppel looking better, backed by return of rig investors burnt by global credit crisis in last 2 years.

 

“The opportunistic investment by Standard Drilling could be the beginning of the return of asset investors and speculators, who take the view of another upcycle in the rig market,” says CIMB; has Outperform call, ups target to $13.00 from $11.30 based on 18X P/E vs 15X previously.

 

Latest rig order worth US$180 million ($238 million) placed by Standard Drilling, comes with options for another 2 rigs, which would bring combined contract value to US$550 million if exercised.