Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: DBS Vickers
The brokerage said the oil price volatility may affect sentiment as the firms may not be able to fully pass on the higher fuel costs in the short term, adding that many new containership deliveries are expected in the first half of this year.
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: DBS Vickers
DBS Vickers has downgraded Singapore-listed container shipping firm Neptune Orient Lines (NOL) (NEPS.SI) to hold from buy and lowered its target price to $2.15 from $2.50.
DBS Vickers said that while volumes continued to surprise in the fourth quarter of 2010, largely driven by intra-Asia trade growth, freight rates have been weakening in recent months as supply has held steady despite the weak season.
DBS Vickers said that while volumes continued to surprise in the fourth quarter of 2010, largely driven by intra-Asia trade growth, freight rates have been weakening in recent months as supply has held steady despite the weak season.
The brokerage said the oil price volatility may affect sentiment as the firms may not be able to fully pass on the higher fuel costs in the short term, adding that many new containership deliveries are expected in the first half of this year.
However, DBS Vickers said potential re-rating catalysts include faster-than-expected recovery in the freight rates, a positive outcome of the annual transpacific renegotiations in May and a more favourable oil price environment.
At 11:11 a.m., NOL shares were down 1% at $2.04 on a volume of 2.7 million shares.
No comments:
Post a Comment