CGS-CIMB analyst Lim Siew Khee reiterated a Buy rating on Seatrium Limited yesterday 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 including Seatrium Limited’s strong order pipeline and strategic focus on high-margin projects. The company has a robust S$30 billion potential order pipeline, with significant opportunities in the oil and gas sector and offshore wind projects, particularly in Europe and Asia. This positions Seatrium well for future growth, despite the recent decline in its order book.
Additionally, Seatrium is actively managing its costs and expanding its margins, which is expected to bolster profitability. The company’s commitment to delivering high-value projects and its strategic cost control measures, such as divestments, are expected to enhance its financial performance. Lim Siew Khee also notes that the company’s targets for revenue and EBITDA growth remain intact, supporting the positive outlook for Seatrium’s stock.
Siew Khee covers the Industrials sector, focusing on stocks such as Yangzijiang Shipbuilding (Holdings), ST Engineering, and Keppel Corporation Limited. According to TipRanks, Siew Khee has an average return of 10.6% and a 57.14% success rate on recommended stocks.