UOB Kay Hian analyst Adrian Loh has maintained their bullish stance on SCRPF stock, giving a Buy rating today.
Adrian Loh has given his Buy rating due to a combination of factors including Sembcorp Industries’ strong financial performance and strategic initiatives. The company exceeded both UOB Kay Hian’s and the market’s expectations for 2024, showcasing resilience in its business model despite a decline in revenue. This was highlighted by a significant increase in their dividend payout, which management has indicated is sustainable due to robust cash flow generation across its business segments.
Furthermore, Sembcorp Industries has introduced a strategic reorganization and leadership structure aimed at ensuring consistent earnings growth and supporting its transformation strategy. These initiatives, coupled with the company’s ability to generate strong cash flows, provide confidence in its medium-term growth prospects both domestically and internationally, justifying the Buy rating with a target price increase to S$8.00.
Loh covers the Industrials sector, focusing on stocks such as Sembcorp Industries, Seatrium Limited, and Yangzijiang Shipbuilding (Holdings). According to TipRanks, Loh has an average return of 11.7% and a 54.26% success rate on recommended stocks.
In another report released today, DBS also maintained a Buy rating on the stock with a S$8.00 price target.