Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Some 300,000 twenty-foot equivalent units of capacity would be absorbed into NOL's current fleet, which would be offset by expiring charters over the next few years, Phillip added.
Company Name: NEPTUNE ORIENT LINES LIMITED
| Research House: Phillip Securities | Price Call: HOLD | Target Price: 1.51 |
Phillip Securities has downgraded Singapore container shipping firm Neptune Orient Lines (NOL) (NEPS.SI) to hold from buy and lowered its target price to $1.51 from $2.50.
NOL is shifting its strategy from chartering 70% of its current capacity to owning most of them, Phillip said, estimating that NOL would require cash outlays of US$3 billion ($3.7 billion) over the next four years to fund new vessels.
NOL is shifting its strategy from chartering 70% of its current capacity to owning most of them, Phillip said, estimating that NOL would require cash outlays of US$3 billion ($3.7 billion) over the next four years to fund new vessels.
Some 300,000 twenty-foot equivalent units of capacity would be absorbed into NOL's current fleet, which would be offset by expiring charters over the next few years, Phillip added.
“Orders placed by shipping lines indicated a preference for larger vessels. The sizeable orders coming on stream could lead to a potential overcapacity situation, if demand growth does not keep pace,” Phillip said in a report.
NOL shares closed at $1.55 on Monday. The stock has fallen around 29% so far this year.
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