Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: UOB KayHian
“Current weak spot rates imply a loss-making situation. However, given a greater percentage of contracted cargo at transpacific and higher value-added services offered, we expect NOL to deliver relatively solid numbers in 1Q11 than most other carriers, which would be a potential share price driver.”
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: UOB KayHian
Neptune Orient Lines (N03.SG) is up 0.5% at $2.07, after its operating data show freight rates for January 1 to February 11 (Period 1) rise 9.8% on year to US$2,654/forty-foot equivalent unit (up 0.3% over the previous period).
UOB KayHian, which has a Buy call and $2.55 target based on 1.4X P/B, says rates were stronger than spot rates in the period, protected by transpacific contracts.
UOB KayHian, which has a Buy call and $2.55 target based on 1.4X P/B, says rates were stronger than spot rates in the period, protected by transpacific contracts.
“Current weak spot rates imply a loss-making situation. However, given a greater percentage of contracted cargo at transpacific and higher value-added services offered, we expect NOL to deliver relatively solid numbers in 1Q11 than most other carriers, which would be a potential share price driver.”
It makes no revisions to its earnings estimates. It adds “NOL could deserve a valuation premium to its peers for its higher value added services and less exposure to Europe where the economic recovery could go at a slower pace than in the U.S.”
Orderbook quotes suggest $2.10 is likely to cap gains.
No comments:
Post a Comment