JPMorgan initiates Seatrium stock with Overweight rating, SGD3.05 target

Published 22/09/2025, 13:56
JPMorgan initiates Seatrium stock with Overweight rating, SGD3.05 target

Investing.com - JPMorgan initiated coverage on Seatrium Ltd (SI:STM) with an Overweight rating and a price target of SGD3.05, citing the company’s strong position in the offshore energy solutions sector.

The Singapore-based company maintains a substantial net orderbook of SGD18.6 billion as of the first half of 2025, representing 1.9 times its annualized revenue, according to JPMorgan. This orderbook is primarily composed of Oil & Gas and Offshore Wind projects.

JPMorgan expects Seatrium to achieve stable orderbook and revenue recognition rates from fiscal years 2025 through 2027, with margin improvements driving the majority of earnings growth and returns.

The investment bank believes Seatrium is on track to reach its 2028 targets of at least SGD1.0 billion in EBITDA and a minimum 8.0% return on equity by fiscal year 2026.

JPMorgan anticipates that sustained margin recovery, new order wins, and non-core asset disposals will drive a re-rating of Seatrium’s stock from its current valuations of 2.5 times price-to-net tangible assets and approximately 15 times price-to-earnings based on fiscal year 2026 estimates.

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