# MARKET TALK: Daiwa Upgrades SembCorp To Outperform From Hold

**URL:** <https://forum.gcaptain.com/t/market-talk-daiwa-upgrades-sembcorp-to-outperform-from-hold/6905>\
**Category:** Shipbuilding\
**Created:** [February 9, 2012, 7:51am UTC](https://forum.gcaptain.com/t/market-talk-daiwa-upgrades-sembcorp-to-outperform-from-hold/6905 "2012-02-09T07:51:52Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![rob](https://avatars.discourse-cdn.com/v4/letter/r/838e76/32.png) [@rob](https://forum.gcaptain.com/u/rob)\
**Post date:** [February 9, 2012, 7:51am UTC](https://forum.gcaptain.com/t/market-talk-daiwa-upgrades-sembcorp-to-outperform-from-hold/6905/1 "2012-02-09T07:51:52Z")

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0854 GMT - 8 Feb [Dow Jones] STOCK CALL: Daiwa upgrades SembCorp Industries ([U96.SG](http://U96.SG)) to Outperform from Hold and raises its target price to S$5.42 from S$4.22 after its 61%-owned subsidiary SembMarine ([S51.SG](http://S51.SG)) announced a US$793 million drillship order from Sete Brasil, turning the house more positive on the rig-order cycle. “We like the company for the growth in its utilities earnings (we forecast a three-year CAGR of 12% for its utilities Ebit for 2011-14), a dividend yield of 5% for both 2012 and 2013, and its exposure to the rigbuilding business.” It estimates excluding SembMarine, SembCorp is trading at 8.7X 2012 PER vs its 10-year average of 9.5X. The stock is up 2.5% at S$5.01.

- Leslie Shaffer, Dow Jones & Company