Lim Siew Khee, an analyst from CGS-CIMB, reiterated the Buy rating on Keppel Infrastructure. The associated price target is S$0.50.
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Lim Siew Khee has given his Buy rating due to a combination of factors that highlight Keppel Infrastructure’s strong performance and potential for future growth. The company’s geographical and sectorial diversification has been a significant advantage, helping to cushion its performance despite some regional challenges. Notably, the Australian operations, including Ixom and Ventura, have exceeded expectations with substantial year-over-year growth, driven by favorable pricing and increased sales volumes.
Moreover, Keppel Infrastructure’s assets under long-term contracts have continued to deliver stable results, contributing to a reliable income stream. The company’s strategic management of its portfolio, including ongoing discussions for contract extensions and potential accretive acquisitions, further supports its growth outlook. While there are risks such as unfavorable weather conditions and policy changes, the potential for recovery in power tariffs and landfill pricing presents opportunities for upside. These factors collectively underpin Lim Siew Khee’s positive outlook and Buy rating for the 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 9.5% and a 56.52% success rate on recommended stocks.