Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Phillip Securities Research in an Oct 4 research report says: "NOL underperformed the market by 27% over the past year on concerns over free falling freight rates, overcapacity in the container shipping industry and more recently, a weakening economic outlook.
"We revised our earnings forecasts southwards and expect more severe losses in FY11E and expect only marginal profits for FY12E. Our downwards revision for FY11E is due to lower than expected freight rates for P7 to P8, which we had earlier expected to reflect uplifts from surcharges.
"FY12E is lowered on downward revisions to our volume assumptions on weaker economic outlook and trade flow expectations. "We derive our target price of $1.40 based on 0.92X FY11/12e blended BVPS of US$1.15 and translating it at an exchange rate of 1.32SGD/USD. Upside of 31%. BUY"
Company Name: NEPTUNE ORIENT LINES LIMITED
| Research House: Phillip Securities | Price Call: BUY | Target Price: 1.40 |
Phillip Securities Research in an Oct 4 research report says: "NOL underperformed the market by 27% over the past year on concerns over free falling freight rates, overcapacity in the container shipping industry and more recently, a weakening economic outlook.
"We revised our earnings forecasts southwards and expect more severe losses in FY11E and expect only marginal profits for FY12E. Our downwards revision for FY11E is due to lower than expected freight rates for P7 to P8, which we had earlier expected to reflect uplifts from surcharges.
"FY12E is lowered on downward revisions to our volume assumptions on weaker economic outlook and trade flow expectations. "We derive our target price of $1.40 based on 0.92X FY11/12e blended BVPS of US$1.15 and translating it at an exchange rate of 1.32SGD/USD. Upside of 31%. BUY"
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