SGX-listed companies Sembcorp Marine (SG:S51) and AEM Holdings Ltd. (SG:AWX) will release their Q1 2023 earnings this week on May 3. Prior to the announcement, analysts had expressed a positive outlook on these stocks by awarding them with Buy ratings.
In terms of share price growth, S51 has a higher upside potential of almost 40%, while AWX exhibits limited growth potential.
Let’s take a look at these companies in detail.
Sembcorp Marine Limited
As a prominent marine and offshore engineering conglomerate, Sembcorp Marine specializes in delivering an extensive range of integrated solutions to the offshore, energy, and marine industries.
The company will post its quarterly earnings for the period that ended on March 31 this week on Wednesday. Analysts expect the company to be poised for a more promising outlook after completing its acquisition of the offshore and marine division of Keppel Corporation Limited (SGX: BN4).
Furthermore, Sembcorp is following a “bottom-up” strategic assessment aimed at restoring profitability based on its solid order backlog. This gives new hope to investors as they look forward to the company turning profitable sometime soon.
Analysts remain highly bullish on the company’s enhanced capabilities to meet its order pipeline post-acquisition. The combined entity now has an expanded order backlog of S$18 billion, extending over the next three years. Nevertheless, successful execution remains critical, and the company must guarantee the fulfillment of its commitments while managing costs proficiently.
Sembcorp Marine Share Price Target
According to TipRanks’ rating consensus, S51 stock has a Strong Buy rating backed by all six Buy recommendations.
The average target price is S$0.17, which has an upside potential of around 40% from the current price level.
AEM Holdings Limited
AEM is a worldwide producer and provider of engineering merchandise catering to electronics, instruments, aerospace, and other industries.
The company will report its first-quarter earnings for 2023 on May 3. During its full-year results for 2022, the company AEM issued a cautious outlook for 2023. The company is targeting a revenue guidance of S$500 million for FY2023 in light of the restricted visibility and expected instability in the sector. According to TipRanks, the sales forecast for Q1 is S$135.4 million.
Prior to the announcement of these results, analysts had a moderately bullish outlook on the stock. 13 days ago, analyst William Tng from CGS-CIMB reaffirmed his Buy rating on the stock and anticipates a 14.2% increase in the share price.
What is the Price Target for AEM?
AWX stock has a Moderate Buy rating on TipRanks based on a total of seven recommendations, of which four are Buy.
The price target for AWX is S$3.54, which is 4.73% higher than the current price level. The target price ranges from a low of S$2.0 to a high of S$5.0.
Conclusion
Analysts retain a cautiously bullish stance on the forthcoming earnings of these companies and have maintained their Buy recommendations ahead of their results.
