NOL - NOL downgraded to Neutral by Nomura; $2.30 target

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: Nomura

Nomura has lifted Neptune Orient Lines (N03.SG) target price to $2.30 from $2.20 after raising FY10-12 earnings forecasts to reflect cost savings, but downgrades to Neutral from Buy on limited upside from current levels, according to Dow Jones.



Nomura says current price already factors in container shipping group’s return to profitability; “we believe container freight rates may have peaked and could potentially decline by end of the year. This is important as the share price is typically driven by directional movement in freight rates.”

Research house notes company posts 2Q10 net profit of US$100 million ($135 million) vs US$146 million loss year earlier, aided by higher freight rates, volumes, cost savings. Shares off 1.5% at $2.03.