CWT - CWT target, estimates raised by CWT; Keeps Outperform

Stock Name: CWT
Company Name: CWT LIMITED
Research House: CIMB

CIMB raises CWT (C14.SG) target to $1.72 from $1.12, maintains Outperform.



CIMB notes CWT will be acquiring 60% equity stake in South African freight forwarder, Aquarius Shipping International (ASI).



“We expect earnings accretion from FY11 onwards. CWT has also been pursuing organic growth in its commodities logistics business in Turkey and Indonesia.”

Raises FY11-12 earnings forecasts by 12.8%-12.9% to factor in higher contributions from commodities logistics; “in our view, recent corporate developments serve to launch the company onto the international commodities logistics scene.”



On higher growth potential, raises valuation to 19x CY12 P/E (from 14x), at slight discount to 2007 valuation high of 20x, when CWT announced foray into commodities logistics.



Says catalysts expected from larger-than-expected contributions from African expansion, earlier-than-expected contributions from Indonesian operations. Shares +3.3% at $0.945.