SINGAPORE (July 4) – Phillip Securities Research on Monday initiated coverage on Sembcorp Marine with a “sell” rating and a target price of $1.16.

“Dragged by the cyclical downturn of Offshore and Marine (O&M) sector, Sembcorp Marine (SMM) is undergoing a tough period,” says Phillip analyst Chen Guangzhi, adding that the sector is “awaiting to revive in 2017 or 2018”.

SMM is engaged in four O&M segments: rigs and floaters, repairs and upgrades, offshore platforms, and specialised shipbuilding.

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