UOB raises target on CWT to $1.61; keeps buy

Stock Name: CWT
Company Name: CWT LIMITED
Research House: UOB KayHian

UOB Kay Hian has raised its target price for Singapore logistics company CWT (CWTD.SI) to $1.61 from $1.23 and maintained its buy rating.

UOB said a new area for CWT's future growth is commodities trading as the company's presence and experience in commodities logistics gives it natural advantages, such as trade information flow and strong relationships with firms in the sector.

Over the past 6-9 months, CWT has been gradually building up its assets in commodities logistics, UOB said, adding that the company's recent license as a US Futures Commission Merchant enables it to provide trading access and logistics solutions.

The brokerage said that CWT had ventured into coal trading last year by sourcing coal from Indonesia and delivering it to customers in India and China. In the long term the company could consider trading metals and other soft commodities, UOB added.

At 9:57 a.m., CWT shares were down 1.7% at $1.19 on a volume of 157,000 shares. The stock has risen around 19% so far this year.