Seatrium Limited, the Energy sector company, was revisited by a Wall Street analyst today. Analyst Adrian Loh from UOB Kay Hian maintained a Buy rating on the stock and has a S$2.96 price target.
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Adrian Loh has given his Buy rating due to a combination of factors that highlight Seatrium Limited’s strong market position and growth potential. Despite facing arbitration from Keppel over a financial claim, Seatrium has demonstrated resilience by securing over S$300 million in new contracts for powerships, FSRUs, and an FLNG vessel. This success adds to their substantial order book of S$18.6 billion and a promising project pipeline valued at S$30 billion, indicating robust future revenue streams.
Moreover, Seatrium’s strategic merger with Keppel Offshore Marine has fortified its capabilities in the offshore, renewables, and energy transition sectors. The company’s ability to reverse previous financial provisions and secure significant contracts, such as the integration of floating power plants and the upgrade of an FLNG vessel, underscores its operational strength and market confidence. These factors collectively support the Buy rating with a target price of S$2.96, reflecting optimism about Seatrium’s future performance and growth prospects.