Brokers' take

Keppel Corporation > Add CIMB, Oct 12 Oct 13 close: S$7.07 Target price: S$8.58

WE upgrade Keppel Corp from Hold to Add, with a new sum-of-parts target price of S$8.58, incorporating a revised revalued net asset value (RNAV) for Keppel Land and Tianjin Eco City, as well as two times the oil and gas price-to-book value.

We came away positive from our recent non-deal roadshow with Keppel Corp to US/Canada and see value in the group's sustainable urbanisation strategy across business segments. Keppel Corp is a safe stock to own to ride the bottoming offshore & marine cycle and the upcycle of Singapore's residential market, thanks to its early landbank inventory.