Keppel Corporation Limited: Promising Growth and Strategic Asset Monetization Drive Buy Recommendation

Phillip Securities analyst Paul Chew maintained a Buy rating on Keppel Corporation Limited (BN4 – Research Report) today and set a price target of S$8.00.

Paul Chew has given his Buy rating due to a combination of factors that highlight Keppel Corporation Limited’s promising growth trajectory. The company reported a significant 25% year-over-year increase in net profit for the first quarter of 2025, primarily driven by its infrastructure and real estate sectors. Additionally, asset management fees saw a healthy growth of 9%, supported by substantial equity raised, which further strengthens the company’s financial position.
Moreover, there is an improved visibility of earnings growth from the second half of 2025 onwards, with several projects expected to contribute positively. These include the leasing of Keppel South Central, the commissioning of Bifrost cables, and the Keppel Sakra Cogen Plant, which has already secured full capacity contracts. Despite challenges in the mobile consumer segment, Keppel’s overall operational strength and strategic asset monetization plans, such as the potential sale of Seatrium shares, reinforce the Buy recommendation with a target price of S$8.00.

In another report released today, UOB Kay Hian also maintained a Buy rating on the stock with a S$9.25 price target.