Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - JPMorgan has initiated coverage on Keppel Corp. (SI:KEP) (OTC:KPELY) with an Overweight rating and a price target of SGD12.50.
The investment bank cited Keppel’s transformation into a global asset manager with expertise across digital infrastructure as a key factor in its positive outlook for the company.
JPMorgan expects Keppel to divest approximately half of its assets that are considered non-core, while projecting an 8% annual three-year compound annual growth rate (CAGR) in core PATMI, supported by 7% annual funds under management growth and a 46% increase in power generation capacity.
The bank anticipates Keppel’s return on equity to rise, bolstered by the company’s shareholder-focused approach that includes SGD0.5 billion in annual share buybacks and higher dividends, which could yield 7.1% by fiscal year 2026.
JPMorgan predicts Keppel’s valuation multiples will converge with regional asset management peers as the company continues its strategic transformation.
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