SINGAPORE (June 4): CGS-CIMB Research and DBS Vickers Securities are maintaining their “add” and “buy” calls on Sembcorp Industries as they like the group’s latest acquisition of UK Power Reserve (UKPR), the UK’s largest flexible distributed energy generator.
The deal marks one of the first major steps the group has taken in recycling its utilities assets post its strategic review in early-2018.
While CGS-CIMB’s target price remains at $3.49 as it makes no changes to EPS estimates for now, DBS has raised its target price to $4.50 from $4.40 previously after revising FY18 and FY19 earnings forecasts upwards by 3% and 8%, respectively to factor in earnings accretion from UKPR immediately in FY18.
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