Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Company Name: NEPTUNE ORIENT LINES LIMITED
| Research House: Samsung Securities | Price Call: BUY | Target Price: 1.50 |
Samsung Securities has initiated coverage of Singapore container shipping firm Neptune Orient Lines (NOL) (NEPS.SI) with a buy rating and a target price of $1.50.
Samsung said it expects NOL to be one of the companies most positively affected by the short-term improvement in sentiment towards the liner sector, which could begin early next year due to tighter supply in the industry.
Samsung said it expects NOL to be one of the companies most positively affected by the short-term improvement in sentiment towards the liner sector, which could begin early next year due to tighter supply in the industry.
NOL has also increased its exposure to the growing intra-Asian trade lanes, which should benefit the company in the face of upcoming capacity constraints, Samsung said.
In the longer term, the brokerage said it also expects NOL’s fleet replacement programme and the flexibility it has over controlling its capacity should lower its costs by about 15%.
At 10:24 a.m., shares of NOL were 2.5% higher at $1.03, but have plunged 53% since the start of the year.
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