Credit Suisse raises Keppel Corp's (BN4.SG) target to $13.50 vs $12.10 and Sembcorp Marine (S51.SG) target to $6.20 vs S$5.80 as the brokerage remains Overweight on the offshore & marine sector.

It says market trends indicate that a new rig replacement cycle is possible and that newer generation rigs are increasingly required to enable conversion of more challenging reservoirs. 

“We believe that Keppel and Sembcorp Marine would benefit proportionately from the wave of new orders due to their strong execution capabilities,” the house says. 

Keppel bucks the broad market's decline and rises 0.2% to $11.52, while Sembcorp Marine falls 0.6% to $5.16.