CoscoCorp - Cosco raised to Buy by Deutsche Bank with $2.25 target

Stock Name: CoscoCorp
Company Name: COSCO CORPORATION (S) LTD
Research House: Deutsche Bank

Deutsche Bank upgrades Cosco (F83.SG) to Buy from Hold, lifts target price to $2.25 from $1.77 after raising FY11-12 earnings estimates by 7%-14%, says Dow Jones.



Changes reflect 9% upgrade in new annual order assumptions for FY11-12.



Expects margins to increase in coming years given improving execution. Notes completion time for typical 57,000-deadweight ton bulk carrier now 16 months vs 18 months in 2009, with management expecting further reduction to 14 months by end-2010, 12 months by end-2011.



Says Cosco well-positioned to benefit from Chinese government support for shipbuilders in form of financing measures. Shares +1.6% at $1.88.