According to analysts, the share price of the SGX-listed Sembcorp Industries Limited (SG:U96) has been rated as a Strong Buy, predicting a 38% growth in its share price. Analysts remain bullish on the stock as the company presents robust growth potential, driven by its significant expansion of the renewables segment.
The Sembcorp Industries share price has delivered a return of around 65% over the last 12 months. The notable growth in the company’s share price can be attributed to its commendable operational performance. However, over the last three months, the stock has been trading down by 4.5%, triggered by its half-yearly earnings report released in August. Analysts believe this is an opportunity for investors to accumulate more shares, considering the company’s promising prospects ahead.
Sembcorp Industries is a company dedicated to sustainable solutions, particularly in the realms of energy and urban development. The company aims to shift its portfolio towards a more environmentally friendly future, striving to become a leading provider of sustainable solutions.
Is Sembcorp Industries a Good Stock?
Analysts hold a highly bullish view of the company’s stock, and all of them have kept their Buy ratings intact. 18 days ago, analyst Adrian Loh from UOB Kay Hian reiterated his Buy rating on the stock, anticipating growth of 45% in the share price. Loh expressed confidence in the company’s outlook for 2023 and beyond, highlighting the next phase of growth. He added that short-term factors influencing the company’s share price would include mergers and acquisitions of additional renewable assets and increased renewable targets.
According to Loh, in the long term, the company’s emphasis on hydrogen production has attracted investors’ interest. The company’s current presence in the Middle East provides a solid foundation for expansion in this field. He has also raised his earnings forecast for 2023-25 by 1-4%.
27 days ago, HSBC analyst Rahul Bhatia also confirmed his Buy rating on the stock, predicting a growth rate of 43%.
What is the Price Target for Sembcorp Industries?
According to TipRanks consensus, U96 stock has received a Strong Buy rating, backed by all Buy ratings from 10 analysts. The Sembcorp Industries share price target is set at S$6.85, reflecting a 38% increase from the current trading level.
