Yangzijiang upgraded to "buy", target raised to $1.44 by UBS

Stock Name: YZJ Shipbldg SGD
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD

Research House: UBS

Price Call: BUY

Target Price: 1.44

SINGAPORE (Nov 28): UBS has upgraded Yangzijiang Shipbuilding to "buy" from "neutral" and raised its sum-of-parts price target to $1.44 from $1.21.

The company's gross profit margins have held up better than expected this year as the contracts for the vessels delivered so far were secured after the peak of the shipbuilding market, according to UBS analyst Cheryl Lee.

"We think the stronger-than-expected margins were driven by lower steel prices and execution efficiencies," she said in a note.