SINGAPORE (June 29): UOB Kay Hian is upgrading Sembcorp Industries (SCI) to “buy” from “hold” on limited downside and an improving outlook in India.
The research house is keeping its target price of $3.60 unchanged, valuing the non-marine business at 8.4 times FY19 earnings.
In a Friday report, lead analyst Foo Zhi Wei notes that current valuations imply the non-marine unit to be trading at 6 times earnings, which is below its long-term forward mean P/E of 8 times to indicate the emergence of value.
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