DBS Vickers lifts its target price for Cosco (F83.SG) to $2.76 from $2.35 after rolling forward its valuation to blended 2011-2012 earnings to align with its Singapore peers.

Keeps its Buy call and upgrades 2011 and 2012 earnings forecasts by 2% and 17% respectively to assume increased orders.

Expects US$2.5 billion ($3.3 billion) worth of new orders in 2011 compared to its previous US$2.15 billion estimate.

Says Seven Drilling’s order in March for a second rig is a strong vote of confidence in Cosco; “we believe Cosco would be the forerunner of the growing offshore market in China.”

Shares are flat at $2.11.