Yangzijiang - Yangzijiang target raised to $2.20 vs $1.90 by Credit Suisse

Stock Name: Yangzijiang
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
Research House: Credit Suisse

Credit Suisse lifts Yangzijiang (BS6.SG) target price to $2.20 from $1.90, based on 13x FY2011 P/E, to align valuation with sector average, keeps Outperform call, according to Dow Jones.



“The market is underestimating Yangzijiang’s growth potential, and the stock will be re-rated as container ship orders accelerate and strong margins are maintained,” says Credit Suisse.



Research house notes when China-based shipbuilder’s new yard ready in 2012, company will be able to construct container ships carrying 8,000 TEUs (20-foot equivalent units), allowing it to move up value chain, compete more effectively with Korean yards. Shares +1.1% at $1.78 Friday.