Most analysts positive on Keppel's rig-building exit but trim targets; shares sink 8.2%

They believe it could be a catalyst for growth in the long run, but others see risks from a prolonged O&M restructuring

Vivienne Tay

Published Sat, Jan 30, 2021 · 05:50 AM

keppel

Singapore

KEPPEL Corp shares hit a two-month low on Friday after the conglomerate announced it intends to exit the rig-building business and instead focus on green energy.

The move drew mixed reactions from analysts. Most believe the group's decision to exit the rig business and restructure subsidiary Keppel Offshore & Marine (Keppel O&M) could be a catalyst for growth. But they are not expecting Keppel's prospects to improve overnight. And at least three analysts have lowered their target prices for the stock.

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