Wednesday, May 4, 2011

Phillip cuts Cosco Corp to hold from buy

Stock Name: CoscoCorp
Company Name: COSCO CORPORATION (S) LTD
Research House: Phillip Securities

Phillip Securities has downgraded Singapore-listed Chinese shipbuilder Cosco Corp (Singapore) (COSC.SI) to hold from buy and cut its target price of $2.39 from $2.68.

Phillip Securities has downgraded its rating for Cosco, as the firm may face headwinds in the dry bulk shipping sector.

“The outlook for the dry bulk shipping remains challenging going forward with tonnage oversupply expected to persist at least till 2012,” said Phillip in a report.
The brokerage also added that demand for shipping of coal in China is expected to slow as power companies shift their plants inland.
However, Phillip noted that Cosco may see more rig building orders as it builds up its track record and reputation in the business.
At 9:45 a.m., shares of Cosco were flat at $2.15, and have gained 0.47% since the start of the year.

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