Home Capital Broker's Calls

Any pullback in Sembcorp's share price is an opportunity to buy, says Maybank in its initiation report

Felicia Tan
Felicia Tan8/3/2022 09:54 PM GMT+08  • 5 min read
Any pullback in Sembcorp's share price is an opportunity to buy, says Maybank in its initiation report
Sembcorp Banyan @ Jurong Island. Photo: Sembcorp
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Maybank Securities analyst Kelvin Tan has initiated coverage on Sembcorp Industries with a “buy” call and a target price of $3.40.

Tan’s target price represents a 14% upside to Sembcorp’s price of $2.95 as at Aug 2.

“We derive our valuation from a sum of the parts (SOTP) method, based on FY2023 forecasts. We value Sembcorp’s utilities business with an implied FY2023 P/E of 12.2x, which is +1 standard deviation above the five-year average of 10.8x. This is still below regional peers of 15.7x,” he says.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.