SembCorp Marine target price raised to 3.90 sgd by UBS

UBS Investment Research has raised its price target for SembCorp Marine Ltd (SembMarine) to 3.90 sgd from 3.80, after the company bought SMOE Group and Sembawang Bethlehem Pte Ltd to from parent SembCorp Industries for 66.75 mln sgd. "These acquisitions will enable SembMarine to gain full control over the land its key shipyard Sembawang Shipyard sits on, as well as about additional 40 hectares of land. This should allow it to utilise and plan its capacity more effectively; estimated cost savings on rental alone is 130 mln sgd," UBS said in a note to clients. As a result of the savings, UBS said SembMarine's earnings in 2007 and 2008 will be boosted by about 3.0 pct. At 9.14 am, SembMarine was up 0.02 sgd or 0.63 pct at 3.20 with 500,000 shares changing hands.