Brokers' take

Sembcorp Industries | Buy

Target price: S$3.21

March 14 close: S$3.08

OCBC Investment Research, March 14

Since our Jan 29, 2016 sector report in which we highlighted the undervaluation of Sembcorp Industries' (SCI) utilities segment, its share price has appreciated by 35 per cent, compared to the STI's 10 per cent gain over the same period. In Jan, fear of an SMM privatisation by SCI was at its peak, and that weighed on SCI's share price.

As the market was later reminded that a rescue of Sembcorp Marine (if required) could take the form of several kinds of structures, and also by different players, (in which timing and pricing are both unknowns, no less), in…