Keppel Buy Rating Reiterated as Asset Monetisation Progress Supports Balance Sheet, with SOP-Based Target Price Maintained at S$13.52
Complete. Here is the key summaryCGS International analyst Lim Siew Khee reiterated a Buy rating on Keppel Corporation with a maintained S$13.52 target price. The positive stance is driven by progress in asset monetisation, including the S$1.2bn sale of six jack-up rigs, supporting the FY26 target and expectations for special dividends. Proceeds are expected to reduce debt, strengthening the balance sheet and boosting EPS. Future catalysts like potential M1 sales and the Bifrost Cable System further justify the optimistic outlook.
Analyst Lim Siew Khee of CGS International reiterated a Buy rating on Keppel Corporation Limited, retaining the price target of S$13.52.
Lim Siew Khee has given his Buy rating due to a combination of factors, including Keppel’s clear progress in monetising non-core assets and the visibility of further divestments. The recent sale of six jack-up rigs at around S$1.2bn, together with other deals such as i12 Katong, supports the view that Keppel is on track to achieve its S$2bn-3bn asset monetisation target for FY26, underpinning expectations of special dividends and a robust overall DPS.
At the same time, Lim highlights that using a significant portion of divestment proceeds to reduce debt should strengthen Keppel’s balance sheet, lower interest costs and provide modest EPS uplift. She also sees upside from potential future catalysts, such as renewed discussions on M1’s partial sale, further property asset disposals and growth opportunities from projects like the Bifrost Cable System, justifying the maintained SOP-based target price of S$13.52 and a continued positive stance on the stock.