Stock Name: CoscoCorp
Company Name: COSCO CORPORATION (S) LTD
Research House: Citigroup
Company Name: COSCO CORPORATION (S) LTD
Research House: Citigroup
Citigroup upgrades Cosco (F83.SG) to Buy from Sell, lifts target price to $2.30 from $1.40 after increasing FY11-12 earnings estimates by 23%-26%, says Dow Jones.
Citi notes outlook for shipbuilding industry has improved significantly after period of large losses: “Our EPS forecasts are above consensus numbers as we believe Cosco is one of few yards that can deliver strong year-on-year growth even in an industry downturn.”
Research house says consensus view underestimates Cosco’s ability to deliver on margins: “A key development the Street has likely overlooked is the strong progress made through simple fabrication to complex integration work for both rigs and FPSO (floating, production, storage, offloading) vessels. Cosco has also penetrated into windmill vessels, tapping into growing global demand for alternative energy.”
Shares +5.2% at $1.82.
Citi notes outlook for shipbuilding industry has improved significantly after period of large losses: “Our EPS forecasts are above consensus numbers as we believe Cosco is one of few yards that can deliver strong year-on-year growth even in an industry downturn.”
Research house says consensus view underestimates Cosco’s ability to deliver on margins: “A key development the Street has likely overlooked is the strong progress made through simple fabrication to complex integration work for both rigs and FPSO (floating, production, storage, offloading) vessels. Cosco has also penetrated into windmill vessels, tapping into growing global demand for alternative energy.”
Shares +5.2% at $1.82.
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