CGS-CIMB analyst Lim Siew Khee reiterated a Buy rating on Seatrium Limited today and set a price target of S$2.67.
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Lim Siew Khee has given his Buy rating due to a combination of factors that highlight Seatrium Limited’s strong position in securing significant contracts and its promising future growth prospects. The company recently secured its fourth high-voltage direct current (HVDC) contract from TenneT, valued at approximately S$2 billion, which contributes to a year-to-date order win total of around S$4 billion. This contract is part of a broader framework agreement with TenneT, indicating a robust pipeline of future projects.
Furthermore, Lim Siew Khee notes the potential for Seatrium to secure additional orders worth S$6 billion in 2026, with opportunities in FPSO integration and module fabrication. The company’s profit recovery path is becoming clearer, with expected earnings growth from higher-margin orders in the coming years. The resolution of arbitration with Maersk and potential asset monetization are also seen as key catalysts for re-rating the stock. These factors collectively support the Buy rating, reflecting confidence in Seatrium’s strategic direction and financial outlook.
In another report released today, DBS also reiterated a Buy rating on the stock with a S$2.96 price target.