Keppel: Buy Rated on Resilient Multi-Segment Growth, Enhanced Shareholder Returns, and Rising Recurring Fee Income

Phillip Securities analyst Paul Chew has maintained their bullish stance on BN4 stock, giving a Buy rating on February 6.

Paul Chew has given his Buy rating due to a combination of factors, including solid growth in Keppel’s core “New Keppel” earnings and resilient performance across all three divisions. Infrastructure profits expanded despite weaker electricity spreads, supported by strong demand for decarbonisation and sustainability solutions, while real estate and connectivity benefited from higher asset management fees, improved REIT contributions, and lower financing costs.

He also factors in the enhanced shareholder returns through a maintained ordinary dividend and an additional special payout tied to ongoing asset monetisation. His raised target price reflects higher valuations for the infrastructure and asset management segments, aligned more closely with global peers, and he expects future earnings to be underpinned by recurring fee income, cost efficiencies, new power capacity from the Keppel Sakra Cogen plant, and stable maintenance revenue from subsea cables and sustainability projects.

According to TipRanks, Chew is a 5-star analyst with an average return of 21.2% and a 67.28% success rate. Chew covers the Technology sector, focusing on stocks such as Venture, Adobe, and Microsoft.

In another report released on February 6, UOB Kay Hian also maintained a Buy rating on the stock with a S$13.23 price target.