According to him, the company appears to be at an “interesting crossroads” in 2022, with the exit of its offshore marine segment and moving towards a more asset-light and recurring earnings business model, as well as towards its 15% return on equity (ROE) target compared to the ROE of 9.1% in 2021 and the 1HFY2022 annualised ROE of 8.4%.
UOB Kay Hian analyst Adrian Loh has maintained his “buy” call for Keppel Corp with a target price (TP) of $10.11, representing a 36% upside.
In his report dated Sept 12, Loh says that Keppel and its subsidiaries’ expenditure of over $3.2 billion on stakes in infrastructure has put in place the “foundations for the next stage of growth” after the company’s planned divestment of its offshore marine unit, which is expected in 4QFY2022.
