Brokers' take

Keppel Corporation | Outperform July 4 close: S$6.34 Target price: S$8.70 Credit Suisse, July 3

Keppel hosted a tour of the Golar Hilli vessel, which is currently undergoing commissioning before its scheduled completion in August. Management presented its strategy to grow the gas business, which is seen as a revenue opportunity to offset weakness in the rigbuilding market. We believe risk-reward appears attractive as the stock is trading close to trough valuation, while potential recovery in non-rig orders and property segments could drive a re-rating. In a grey-sky scenario, we estimate the trough valuation for Keppel to be S$6.00, based on 0.9 time price to book for its property business and no value for offshore and marine.

Singapore retail | Neutral RHB Research, July 4