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UOB Kay Hian keeps 'overweight' call on offshore & marine sector as industry fundamentals continue to firm up

Felicia Tan
Felicia Tan3/16/2022 10:37 AM GMT+08  • 4 min read
UOB Kay Hian keeps 'overweight' call on offshore & marine sector as industry fundamentals continue to firm up
Analyst Adrian Loh has recommended “buy” on Yangzijiang, Keppel and SembMarine with target prices of $1.95, $6.94 and 11 cents.
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UOB Kay Hian analyst Adrian Loh has maintained his “overweight” recommendation on the offshore & marine (O&M) sector as the industry’s fundamentals continue to firm up.

In his report dated March 14, Loh sees several positives for the sector’s outlook, including the higher demand for rigs amid the ongoing supply destruction.

“In the past six months, the offshore drilling industry has been able to maintain its relatively high utilisation levels as it attempts to progress past pre-Covid-19 levels. Together with these stronger utilisation numbers, we note that dayrate numbers have also risen on a y-o-y basis with the exception of drillships,” he writes.

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