SGX-listed Keppel Corporation Limited (SG:BN4) secured a place on the “Perfect 10” list on the TipRanks Smart Score tool. The stock recently made its entry onto the list five days ago, suggesting a higher probability of outperforming market averages in terms of performance.
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The stock has been rated a Moderate Buy by analysts, who also forecast a potential upside of over 20% in its share price.
TipRanks provides a variety of tools to aid investors in conducting thorough research and selecting suitable investment opportunities. The TipRanks Smart Score tool assigns scores to stocks ranging from one to ten, which offers insights into a stock’s potential to outperform overall market returns. The assigned score is determined by evaluating eight different factors, including hedge fund activities, fundamental analysis, analyst ratings, and more.
Let’s dig deeper.
A Well-Deserved “Perfect 10” Rating
Keppel reported solid first-quarter earnings for 2023, driven by higher revenues and net profit. During the quarter, the Group recorded revenue of S$2,255 million, marking a growth of approximately 9% compared to S$2,068 million from the previous year. The net profit also showed a notable increase compared to the last year, primarily attributed to the substantial gain of approximately S$3.3 billion resulting from the merger of its offshore and marine (O&M) division with Sembcorp Marine (SG:S51).
After divesting from the marine segment, the company has shifted its focus towards an asset-light and recurring earnings model. Moving forward, the company is experiencing ongoing robust transaction volumes in infrastructure and data centers, both of which are crucial services that continue to attract high demand.
Last month, Adrian Loh from UOB Kay Hian confirmed his Buy rating on the stock, forecasting a 40% growth rate in the share price.
At the same time, DBS analyst Pei Hwa Ho also reiterated his Buy rating on the stock with a price target of S$8.3. This implies an upside of 28.6% in the share price.
What is the Target Price for Keppel Stock?
According to TipRanks’ analyst consensus, BN4 stock has a Moderate Buy rating. The stock has a total of five recommendations, of which four are Buy.
The average share price forecast is S$7.84, which is 22% higher than the current price level.
Ending Notes
Keppel’s well-deserved “Perfect 10” Smart Score is fairly based on its fundamentals of diversified business operations, technical analysis, and favorable analyst comments. The positive ratings lend further support to the investment opportunity at hand.
