| Latest Forum Topics / Others |
 Post Reply
|
|
O&M sector
|
|
|
Nostradamus
Supreme |
15-Sep-2006 17:09
|
|
x 0
x 0 Alert Admin |
Goldman Sachs remains bullish on the offshore and marine engineering (O&M) sector but said sector heavyweights Keppel and SembMar are already fully valued and that it is time for investors to look for undervalued second-tier O&M plays. "We remain bullish on the O&M industry and expect oil rig demand to stay at robust levels through 2009, driven by high oil prices," Goldman said. "While we expect the major offshore rig builders to extract the most value from the cyclical upswing, we see opportunities for new players to emerge," it said. "Strong expectations have been built into the share prices of major offshore rig builders Keppel and SembMar and we believe that these shares are fairly priced at current levels," the brokerage said. Goldman rates both Keppel and SembMar as "neutral," with price targets of $14.30 and $3.54, respectively. As an alternative to these major offshore rig builders, Goldman said investors should look into smaller players like Labroy Marine and KS Energy. |
| Useful To Me Not Useful To Me | |