Singapore: Investment bank UOB Kay Hian has raised its view on the Asian liner sector and specifically Hong Kong’s OOIL, the parent of boxline OOCL.
Analyst Lawrence Li hiked the business from market weight to overweight amid a better outlook for the Asia Europe and Transpacific routes.
Li maintains that an 18% cut in capacity on Asia Europe will likely support rates during the slack season while Transpacific profitability is set to rise “significantly” next year.
“The turnaround in 2013 is highly visible now,” he noted.
Li lifted OOIL from hold to buy, as it is likely to be a strong beneficiary of improved transpacific rates.
“We believe OOIL will continue to be the most profitable carrier in the region,” Li said. [02/11/12]
