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

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.