NOL upgraded to "buy", target raised to $1.10 by DBS Vickers

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED

Research House: DBS Vickers

Price Call: BUY

Target Price: 1.10

SINGAPORE (Jan 19): DBS Vickers has upgraded Neptune Orient Lines to "buy" from "hold" and raised its price target from 88 cents to $1.10, pegged at parity to projected 2015 book value.

NOL could be in for "better luck" this year as prices of bunker fuel have fallen from US$600 per metric tonne to less than US$300 in slightly more than six months, according to DBS Vickers analyst Suvro Sarkar.

"Given that NOL's liner business consumes about three million metric tonnes of bunker fuel per year, this implies significant cost savings," he wrote in a note.