Brokers' take

Sembcorp Marine | Add July 11 close: S$1.655 Target price: $1.88 CIMB Research, July 10

IN its recent UK/Europe non deal roadshow with us, SembMarine reiterated its S$2-3 billion order target for 2017, comprising Gravifloat gas terminals and offshore platform/conversion work. Questions by investors were: strategic review by Sembcorp Industries, order outlook and cost competitiveness of SembMarine versus Koreans.

We believe SembMarine is unlikely to be taken private or divested by Sembcorp Industries in the near term given both their stretched balance sheets; status quo could be the best for now.