Keppel's stock surged 5.60% during intraday trading on Friday, driven by positive analyst sentiment and the commencement of a new power generation facility.

CGS International upgraded Keppel's rating to "add" from "hold" and raised its target price to S$13.52 from S$11.50. The upgrade follows the commencement of the Keppel Sakra Cogen plant in May 2026, which adds 600 megawatts to the company's power capacity. The brokerage estimates a blended spark spread of around SGD 50-60 per megawatt from the new plant.

Together with Keppel's energy-as-a-service business, the company's infrastructure division net profit could grow by approximately 11% year-on-year in the first half. Analysts suggest Keppel could be considered an infrastructure proxy in the second half of the year given these developments.