NOL is Maybank’s top transport pick
Singapore: In its most recent investment report on the “overweight” shipping sector Maybank has pinpointed Neptune Orient Lines as its top pick in Singapore’s transport sector, premised on a recovering economy, led primarily by encouraging economic indicators originating from the US and China.
“Neptune Orient Lines (NOL) is our top pick in the Transport sector and Shipping sub-sector for its significant exposure to the Trans-pacific trade and a relatively minimal exposure to the Asia-Europe trade,” Maybank wrote in its report issued today.
“Chinese import/export data released last week soundly beat street estimates, and the freight indices are starting the year with an encouraging up-tick – all these signs improving the visibility of a global economic recovery. We believe this visibility justifies a re-rating for NOL’s Target Price to SGD1.71, now pegged to 1.4x FY2013 P/BV,” Maybank suggested.
Another Singapore-listed vehicle received a Buy recommendation from Maybank – HPH Trust, the south China terminals of Hutchison Port Holdings. [15/01/13]