Adrian Loh, an analyst from UOB Kay Hian, maintained the Buy rating on Seatrium Limited (SMBMF – Research Report). The associated price target was raised to S$2.96.
Adrian Loh has given his Buy rating due to a combination of factors that highlight Seatrium Limited’s strong market position and growth potential. The company has demonstrated a robust competitive edge in Brazil, securing significant contracts with Petrobras for FPSO newbuilds and related works. This positions Seatrium well to capitalize on future opportunities, especially as Petrobras plans to invest heavily in exploration and production over the next few years.
Additionally, Seatrium is expanding its Maintenance, Repair, and Overhaul (MRO) business, which offers steady recurring revenue and lower earnings volatility. The company’s involvement in the renewables sector, with a substantial portion of its order book dedicated to green solutions, further underscores its growth prospects. Despite challenges like high interest rates, Seatrium remains optimistic about the demand in this sector, particularly in Europe, which continues to invest in renewable energy.
According to TipRanks, Loh is a 4-star analyst with an average return of 12.0% and a 55.56% success rate. Loh covers the Industrials sector, focusing on stocks such as Seatrium Limited, Sembcorp Industries, and Yangzijiang Shipbuilding (Holdings).