STOCKS NEWS SINGAPORE-Maybank, DMG up Keppel Corp target
Maybank Kim Eng raised its target price on Singapore's Keppel Corp Ltd to S$12.90 from S$12.50 and maintained its buy rating after the world's largest rig builder reported better-than-expected earnings for its second quarter.
Maybank raised its 2012 fiscal year net profit estimate by 5 percent to reflect higher property and investment income.
Keppel shares were down 0.6 percent at S$11.17. The stock ended 1.6 percent higher on Thursday ahead of the results.
Keppel reported a 35 percent rise in net profit and the results came ahead of market expectations.
While Keppel's operating margin for offshore and marine stood at 13.2 percent in the quarter, Maybank remained optimistic that full-year margins would come within its expectation of 14-16 percent.
"A tight rig market with rising utilisation rates and an aging rig profile would continue to support the rig-building business," Maybank said.
DMG & Partners Securities raised its target price on Keppel Corp to S$13.80 from S$13.60, after increasing its earnings per share estimate by 15 percent for 2012 fiscal year and by 1 percent for 2013. It maintained its buy rating.
Story on Keppel's results
1114 (0314 GMT)
(Reporting by Eveline Danubrata in Singapore; email@example.com)
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