Will Keppel Corp rise again after last year’s impairment hit?

SINGAPORE (Jan 27): OCBC Investment Research is maintaining its “hold” call on Keppel Corporation after the group’s revenue and net profit fell below its expectations for FY16.

(See also: Keppel ends FY16 with earnings of $784 mil, the lowest in a decade)

The research house’s fair value estimate, however, has been raised from $5.71 to $6.26 – which results from factoring in the increase of the stock’s price-to-book (P/B) ratio following the impairments taken and the recovery in oil prices, in addition to updated estimates in OCBC’s sum of parts (SOTP) valuation.

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