Seatrium's valuation and its share buyback program, which could help limit further volatility risk, drive Citi Research to upgrade the stock to buy from neutral while maintaining its target price of S$2.65.

After the integrated shipyard's recent share-price correction, the stock is now trading at attractive levels, analyst Luis Hilado says in a note.

A significant portion of Seatrium's approved S$100 million share buyback program remains in place, he adds.

There is a possibility that the company may conduct further buybacks and its share purchase mandate could be renewed again at the upcoming annual general meeting, he says.

Shares are last at S$2.14.