Neptune Orient Lines upgraded to "add", target raised to $1.53 by CIMB

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 1.53

SINGAPORE (Feb 18): CIMB has upgraded Neptune Orient Lines to "add" from "hold" and raised its price target to $1.53 from $1.06, citing "huge" upside to the stock following the US$1.2-billion sale of the shipping line's logistics business to Kintetsu World Express.

"The share price should jump with the unlocking of the value of APL Logistics," CIMB analyst Raymond Yap said in a report today.

NOL will book a gain of about US$900 million from the sale.