Seatrium Limited (SG:S51), earlier known as Sembcorp Marine, will report its second-quarter earnings on July 28. With a bullish outlook, analysts have given Seatrium’s stock a Strong Buy rating, anticipating that the company’s backlog of significant contracts will contribute to enhanced earnings in 2023.
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Seatrium Limited provides comprehensive engineering solutions to the global marine, energy, and offshore industries. The company was formerly known as Sembcorp Marine, which underwent a name change in April 2023. The company proposed the name change after completing its merger with Keppel Offshore & Marine Limited.
Analysts’ Opinion
Last month, analysts from UOB Kay Hian and CGS-CIMB expressed their bullish views on the stock.
Adrian Loh from UOB is predicting a 20.5% upside in the share price. According to Loh, Singapore’s offshore sector is anticipated to maintain a positive outlook in 2023. This projection is supported by the limited global supply resulting from years of underinvestment. He observed that there is considerable upside potential for production assets in the coming years, which would serve as a supportive factor for Seatrium.
Last month, CGS-CIMB analyst Lim Siew Khee also confirmed her Buy rating on the stock, forecasting a growth of 32% in the share price. Although Lim predicts that the company will continue to experience a net loss of S$45 million, she is confident that Seatrium is in a favorable position to secure additional significant contracts.
She also expects that the company, with its existing order book exceeding S$20 billion, has the potential to secure an additional S$7 billion in contracts during the upcoming fiscal year of 2024.
What is the Target Price for SGX S51?
According to TipRanks, S51 stock has a Strong Buy rating from analysts at an average price target of S$0.17. This is based on three Buy recommendations. The price target reflects 20% growth as compared to the current price level.
Conclusion
In the upcoming earnings announcement, analysts are looking forward to the company’s revenue forecasts and order details across various segments.
Analysts are bullish on the stock’s long-term prospects and have rated it a Strong Buy.
