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Investing.com - UBS initiated coverage on Keppel Corp. (SI:KEP) (OTC:KPELY) with a Buy rating and a price target of SGD10.80.
The investment bank cited Keppel’s transformative journey since divesting its offshore and marine business in 2023, moving away from an asset-heavy developer-conglomerate model toward a private funds-centric strategy.
UBS noted that the "New Keppel" now leverages the balance sheet of its private funds alongside its developer expertise in Infrastructure, Connectivity, and Real Estate to generate recurring asset management and operating income.
The firm highlighted Keppel’s funds under management (FUM), which stands at S$91 billion as of H1 2025, and expressed confidence that the company can achieve its S$200 billion FUM target by 2030.
UBS believes comparisons to global alternative asset managers are feasible for Keppel, suggesting a re-rating in valuation multiples is warranted given the company’s strategic pivot.
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