STOCKS NEWS SINGAPORE-Citi cuts Sembcorp Marine target price

Last Updated: Mon, Nov 26, 2012 03:20 hrs

Citigroup cut its target price on rigbuilder Sembcorp Marine Ltd to S$5.40 from S$6.10 and kept its 'buy' rating, citing smaller revenue recognition and lower margin assumptions.

By 0259 GMT, Sembcorp Marine shares were flat at S$4.39 and have risen 15 percent since the start of the year, compared with the Straits Times Index's 13.4 percent gain.

Citi cut its 2012-2013 earnings per share estimates for Sembcorp Marine by 4-11 percent, but raised its 2014 estimates by 6 percent to account for higher repair contributions and drillship sales.

The brokerage expects Sembcorp Marine's earnings to bottom this year and see a strong rebound in 2013-2014, adding that it was "upbeat on the exploration and production cycle and believe it will continue into 2013, underpinned by demand for broad mix of products."

1101 (0301 GMT)

(Reporting by Charmian Kok in Singapore; Editing by Subhranshu Sahu;


10:01 STOCKS NEWS SINGAPORE-Maybank raises Sheng Siong target price

Maybank Kim Eng raised its target price for supermarket operator Sheng Siong Group Ltd to S$0.60 from S$0.52 and kept its 'buy' rating, citing its high growth potential and improving efficiency.

By 0152 GMT, Sheng Siong shares were unchanged at S$0.49, and have gained 11.4 percent since the start of the year, compared with the FTSE ST Small Cap Index's 21.4 percent rise.

Sheng Siong is able to maximise its store space while designing each store to suit different customer demographics in the area, Maybank noted.

The supermarket operator also offers the lowest prices in Singapore, while investing in technology such as electronic price tagging to improve its efficiency and allow high inventory turnover.

Maybank is pegging Sheng Siong's valuations to competitor Dairy Farm International's 12-month forward price to earnings ratio of 27 times, with a 20 percent discount.

0953 (0153 GMT)

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