Company Name: NEPTUNE ORIENT LINES LIMITED
| Research House: Credit Suisse | Price Call: BUY | Target Price: 1.85 |
Credit Suisse set an outperform rating on Singapore container shipping firm Neptune Orient Lines and raised its target price to $1.85 from $1.20.
NOL’s shares were up 2.2% at $1.405 and have gained 25% so far this year.
Credit Suisse said with 71% of NOL’s revenues and 53% of volumes generated from long-haul markets, the company has significant exposure to rising freight rates.
It said if NOL hits its target of realising US$500 million ($629 million) in cost savings this year, there will be an additional US$180 million of potential net profit after tax for the company.
“Not only will rising earnings and per share metrics drive NOL’s stock price higher, in our opinion, but so too will swelling valuation multiples,” Credit Suisse said.
On average, analysts have upgraded NOL’s earnings per share estimates by 5.1% for this year over the past 30 days, Reuters data shows.
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