Shares of Singapore-listed shipbuilder STX Offshore and Specialised Vessels <STXO.SI> rose as much as 7.3% on Thursday after Goldman Sachs initiated a "buy" rating and a target price of $1.54 on the stock, traders said.

At 9:24 a.m., STX OSV shares were up 4.6% at $1.15 on a volume of 5.4 million shares.

Goldman said it believes STX OSV will maintain its leading position in offshore and specialised vessels on the back of its research and development as well as geographical edge.

The brokerage added that it increasingly sees STX OSV as a strong proxy to Singapore's offshore and marine sector.

However, Goldman said key risks include slow orders, given the current global order backlog and tight financing for building of new specialised vessals used in the offshore industry, as well as poor execution, which may result in major cost overruns or delivery delays.