“The win reinforces our positive view on Keppel as it rides the resumption of the floating production cycle, while its OpCo is already currently profitable,” say Lee and Osman. Their $7.45 TP for Keppel is derived by taking a 10% conglomerate discount to a sum-of-the-parts valuation (SOTP) of $8.26.
Citi Research analysts Brandon Lee and Jame Osman have reiterated their “buy” rating for Keppel Corporation with a target price (TP) of $7.45.
In their report dated Sept 29, the analysts say that Keppel Offshore & Marine’s (Keppel O&M) repeat newbuild floating production storage and offloading (FPSO) contract win from Petrobras worth US$2.8 billion ($4.0 billion) brings Keppel’s order book to a “significant” $11.8 billion — its highest since 2007.
