NOL - NOL target raised to $1.82 by UBS but keeps at Sell

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

UBS lifts Neptune Orient Lines (N03.SG) target price to $1.82 from $1.30, based on 1.15x P/B vs 0.84x previously, says Dow Jones.



UBS also upgrades FY10-12 EPS estimates to US$0.09, US$0.12, US$0.13 from US$0.01, US$0.05, US$0.06 respectively to account for strong 2Q10 results, expected robust 3Q10 earnings.

“We expect NOL’s earnings recovery momentum to continue as peak season demand brought further volume increase. In addition, we believe NOL will benefit more from contract rate increases and peak-season surcharge on the transpacific route”, where company derives more than half of its revenue, says UBS.



Still, keeps Sell call, citing unattractive valuation. Shares off 0.5% at $2.08.