Credit Suisse has raised its target price on Singapore’s Keppel Corp (KPLM.SI), the world’s largest oil rig builder, to $14.60 from $14.18 and maintained its outperform rating.
Keppel has secured $7.1 billion of orders year-to-date and has options for additional rigs worth $2.5 billion, Credit Suisse said, adding that it has raised its 2011 order forecast to S$10 billion from $8 billion.
Credit Suisse said that it believes there will be a high conversion rate of jack-up rig options into firm contracts, driven by a shift towards more complex wells as well as a need for established drillers to regain market share.
The brokerage added that Keppel is well-positioned to win orders from Brazilian oil company Petrobras’ tender for 21 rigs due to the Singapore firm’s established operations in Brazil, strong execution capabilities and relationship with Petrobras.
Showing posts with label Credit Suisse. Show all posts
Showing posts with label Credit Suisse. Show all posts
Thursday, June 23, 2011
Tuesday, May 24, 2011
UOB BUY Target Price $25 by Credit Suisse
Credit Suisse has upgraded Singapore’s United Overseas Bank (UOBH.SI) to outperform from neutral and raised its target price for to $25.00 from $22.50.
Credit Suisse has raised its earnings per share estimates for UOB from 2011-2013 by 5-7% due to higher loan growth, fee income and an improvement in net interest margins in the second half of 2011.
“UOB is set to show the best loan growth in 2011 with a significant lead over DBS (DBSM.SI) and OCBC (OCBC.SI) already in the first quarter. Banks expect overseas loan growth to be the main driver in 2011, with UOB seeing the highest overseas loan growth,” said Credit Suisse in a report.
The brokerage also added that UOB is its new sector top pick, given its attractive return-on-equity of 13.7% versus 11.2% for DBS (DBSM.SI) and 12.8% for Oversea Chinese Banking Corp (OCBC.SI).
Credit Suisse has raised its earnings per share estimates for UOB from 2011-2013 by 5-7% due to higher loan growth, fee income and an improvement in net interest margins in the second half of 2011.
“UOB is set to show the best loan growth in 2011 with a significant lead over DBS (DBSM.SI) and OCBC (OCBC.SI) already in the first quarter. Banks expect overseas loan growth to be the main driver in 2011, with UOB seeing the highest overseas loan growth,” said Credit Suisse in a report.
The brokerage also added that UOB is its new sector top pick, given its attractive return-on-equity of 13.7% versus 11.2% for DBS (DBSM.SI) and 12.8% for Oversea Chinese Banking Corp (OCBC.SI).
Friday, May 13, 2011
SIA BUY Target Price $18.50 by Credit Suisse
Singapore Airlines, the world’s second-largest carrier by market value, rose the most in a month on the city’s stock exchange after pledging to pay S$1.20 a share in special and final dividends.
The airline climbed 2.8% to $14.66, the biggest gain since April 13. The benchmark Straits Times Index advanced 1.1%.
Singapore Air announced the dividends yesterday after rebounding travel demand following the end of the global recession helped boost annual profit fivefold. Net income in the fourth quarter declined a worse-than-expected 38% because of higher fuel costs.
“The key positive surprise is the big special and final dividend,” Credit Suisse Group AG analyst Sam Lee said in a research note today. “SIA’s valuation is not excessive, but we do not see short-term company-specific catalyst after the big cash dividend.”
Credit Suisse has an “outperform” rating and $18.50 target price for the carrier. Its forecasts are under review pending an analyst briefing today, Lee said.
The carrier’s 40 cent final dividend compares with 12 cents a year earlier. The special dividend totals 80 cents. The carrier had net cash, including investments, of $5.6 billion or about $4.70 a share, as of the end of March, Citigroup Inc. analysts led by Robert P. Kong said in a May 12 note.
PROFIT JUMP
The airline reported net income of $1.1 billion for the year ended March, compared with $216 million a year earlier. Fourth-quarter profit fell to $171 million, missing the $244 million average of four analyst estimates compiled by Bloomberg in the preceding 28 days.
The airline has hedged about 20% of this year’s fuel need at about US$130 per barrel, Chief Executive Officer Goh Choon Phong said at a press briefing in Singapore today.
In the three months ended March, the carrier filled 75.5% of total available seats, down from 80% a year earlier as capacity expansion outpaced demand, it said in a statement yesterday. Passenger numbers were little changed at 4.1 million. Yield, the average price a traveler pays to fly one kilometer, was 12.1 Singapore cents, compared with 11.1 cents a year earlier.
AIRBUS A380s
The airline intends to boost capacity 6% in the fiscal year started April 1. It expects to add eight Airbus SAS A380s, while retiring five Boeing Co. 777s and all seven of its 747-400s.
Singapore Air’s fuel bill, its biggest expense, jumped 24% to $1.24 billion in the quarter ended March 31. Jet- fuel prices averaged US$121.2 per barrel in the quarter in Singapore trading, 42% higher than a year earlier.
“The twin challenges of near-term weakness in load factors and high fuel prices will adversely affect operating performance,” Singapore Air said. “While there has been some respite in the past week, jet-fuel prices are likely to remain high and volatile in the near term.”
The airline climbed 2.8% to $14.66, the biggest gain since April 13. The benchmark Straits Times Index advanced 1.1%.
Singapore Air announced the dividends yesterday after rebounding travel demand following the end of the global recession helped boost annual profit fivefold. Net income in the fourth quarter declined a worse-than-expected 38% because of higher fuel costs.
“The key positive surprise is the big special and final dividend,” Credit Suisse Group AG analyst Sam Lee said in a research note today. “SIA’s valuation is not excessive, but we do not see short-term company-specific catalyst after the big cash dividend.”
Credit Suisse has an “outperform” rating and $18.50 target price for the carrier. Its forecasts are under review pending an analyst briefing today, Lee said.
The carrier’s 40 cent final dividend compares with 12 cents a year earlier. The special dividend totals 80 cents. The carrier had net cash, including investments, of $5.6 billion or about $4.70 a share, as of the end of March, Citigroup Inc. analysts led by Robert P. Kong said in a May 12 note.
PROFIT JUMP
The airline reported net income of $1.1 billion for the year ended March, compared with $216 million a year earlier. Fourth-quarter profit fell to $171 million, missing the $244 million average of four analyst estimates compiled by Bloomberg in the preceding 28 days.
The airline has hedged about 20% of this year’s fuel need at about US$130 per barrel, Chief Executive Officer Goh Choon Phong said at a press briefing in Singapore today.
In the three months ended March, the carrier filled 75.5% of total available seats, down from 80% a year earlier as capacity expansion outpaced demand, it said in a statement yesterday. Passenger numbers were little changed at 4.1 million. Yield, the average price a traveler pays to fly one kilometer, was 12.1 Singapore cents, compared with 11.1 cents a year earlier.
AIRBUS A380s
The airline intends to boost capacity 6% in the fiscal year started April 1. It expects to add eight Airbus SAS A380s, while retiring five Boeing Co. 777s and all seven of its 747-400s.
Singapore Air’s fuel bill, its biggest expense, jumped 24% to $1.24 billion in the quarter ended March 31. Jet- fuel prices averaged US$121.2 per barrel in the quarter in Singapore trading, 42% higher than a year earlier.
“The twin challenges of near-term weakness in load factors and high fuel prices will adversely affect operating performance,” Singapore Air said. “While there has been some respite in the past week, jet-fuel prices are likely to remain high and volatile in the near term.”
Thursday, May 12, 2011
Sembcorp Marine BUY Target Price $6.60 by Credit Suisse
Credit Suisse has raised its target price on Singapore’s Sembcorp Marine (SCMN.SI), the world’s second-largest oil rig builder, to $6.60 from $6.30 and maintained its outperform rating.
Sembcorp Marine said on Monday first quarter net profit rose 1.2% though revenue fell, while margins improved due to greater operational.
Credit Suisse said Sembcorp Marine’s margin performance has surprised on the upside over the past 24 months primarily due to increased efficiency and better pricing of orders. The brokerage lifted its 2011 margin forecast to 17% from 15%.
It also raised its order intake estimate for 2011 to $5 billion from $4 billion. Year to date, Sembcorp Marine has won $1.5 billion of orders and has another $2 billion of options in hand, Credit Suisse said.
The brokerage said it believes orders are likely to pick up in the second half of 2011 due to a combination of strong oil prices, the resumption of drilling in the Gulf of Mexico and positive commentary from offshore drillers.
Monday, May 9, 2011
AirAsia BUY Target Price RM4.80 by Credit Suisse
Credit Suisse Group AG raised its share-price estimate to 4.80 ringgit from 4.30 ringgit after the carrier introduced fuel surcharges. The stock rating was maintained at “outperform,” Annuar Aziz, an analyst at Credit Suisse, wrote in a report 9 May 2011.
The 5 year chart on the left shows recent gains by AirAsia and a significant demand by institutional investors and funds.
Averaging RM1.80 for the first two years, then RM1.50 the next two years, and finally breaking both the RM2.50 and RM3.00 barrier, AirAsia has finally cemented its position as the largest South East Asian (ASEAN) carrier and overshadowing national carrier Malaysia Airlines in terms of fleet, capacity, profits, routes and overall staff satisfaction.
Several other researchers have further upped the target price of AirAsia to above RM4.00. The recently announced fuel surcharge was even greeted with a mature acceptance and signals a positive method to stem the increase in jet fuel prices.
Averaging RM1.80 for the first two years, then RM1.50 the next two years, and finally breaking both the RM2.50 and RM3.00 barrier, AirAsia has finally cemented its position as the largest South East Asian (ASEAN) carrier and overshadowing national carrier Malaysia Airlines in terms of fleet, capacity, profits, routes and overall staff satisfaction.
Several other researchers have further upped the target price of AirAsia to above RM4.00. The recently announced fuel surcharge was even greeted with a mature acceptance and signals a positive method to stem the increase in jet fuel prices.
And it is easy to see that branding spread and viral-marketing effects AirAsia has on travellers. Travellers will tell their friends, families. Championing their low cost airfare to a dream destination. And anticipating for the next round of zero fares, or super low promotional fares. Stop ten people on their tracks and likely 9 out of 10 will have heard, flown, thought about, curious about, AirAsia. Much like Coca Cola. It is everywhere (now). Perhaps even Coke would have coined the term now everyone could have a fizzy drink.
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