DBS Vickers raises SembCorp Marine (S51.SG) target price to $6.08 from $5.48 and keeps Buy rating.

The house says since October, SembMarine has secured US$1.6 billion ($2.1 billion) in orders, reversing its orderbook decline, with orders at about US$5 billion currently from US$4.3 billion a quarter ago.

“Order momentum is gaining traction with SMM seeing a high level of enquiries for newbuild jackups and floaters, as well as production units, and not forgetting its outstanding options for seven newbuild jackups worth about US$1.4 billion.”

DBS Vickers adds, SembMarine’s new proprietary design is well sought after, which will keep it ahead of the competition. DBS Vickers raises FY12 order wins projection to US$5 billion from US$4 billion, compared with FY11’s US$4.5 billion.

“Together with adjusted orderbook recognition schedule on shorter lead times today, plus revised earnings forecasts for 30%-owned Cosco Shipyard Group, results in a 1%-3% adjustment to our FY11-12” forecasts.

Shares are +0.8% at $4.96.