Seatrium shares jump more than 10% following $11 billion order win from Petrobras

Seatrium shares are surging following its announcement on Sat that it has won $11 billion in new orders from longtime customer Petrobras.

DBS estimates that with this "massive" order win, Seatrium's order book stands at more than $25 billion, providing a "much-needed" confidence booster for Seatrium whose shares dropped 15% after it was removed from an MSCI index.

"We believe these contract win announcements shall mark the bottoming out of the stock and any positive guidance in the upcoming 1QFY20024 business update on May 28 shall lend further support to share price," says DBS.

"We maintain our belief on Seatrium’s turnaround," says DBS, which is keeping its "buy" call and $3 target price, which is based on 1.5x FY2024 book value.