STXPO 100 - STX Pan Ocean target cut to $13.90 by CIMB

Stock Name: STXPO 100
Company Name: STX PAN OCEAN CO., LTD.
Research House: CIMB

CIMB cuts STX Pan Ocean (GZ9.SG) target price to $13.90 vs $15.60 after lowering FY10-12 earnings estimates by 53%-60% to assume weaker profitability on view operating costs will remain high, according to Dow Jones.



CIMB notes bunker, port, cargo costs +73% on year in 1H10. Keeps Neutral call: “STXPO may perversely benefit from the recent capesize collapse as it has more cargo commitments than available capesize capacity. The mid-2010 expiry of high-cost vessels chartered in before Lehman’s collapse should also help 2H earnings.”



Stock +2.1% at $13.88.