OCBC Investment Research cut its target price for rigbuilder Keppel Corp Ltd to S$12.49 from S$13.34 and kept its 'buy' rating, citing lower operating margins in the offshore and marine segment as well as lesser property earnings.
By 0146 GMT, Keppel shares were flat at S$10.50, and have jumped 12.9 percent since the start of the year, compared with a 13.8 percent rise in the Straits Times Index.
After securing S$8.8 billion of orders in the first nine months of the year, Keppel's net order book was S$13.1 billion, with deliveries extending to 2019, OCBC said.
"Looking ahead, we are expecting new order wins of about S$5 billion in 2013 from the Caspian Sea, West Africa, Brazil and other regions," the brokerage noted.
It said Keppel has also started to improve the competencies and productivity of its regional yards to meet heavier workload requirements, which will allow more work to be outsourced to them.
0947 (0147 GMT)