Tuesday, February 8, 2011

Bursa Malaysia Price Target: OSK Research ups Maybulk to Buy, downgrades MISC

KUALA LUMPUR: OSK Research said trimming excess supply is now vital in restoring shipping rates.

It said on Tuesday, Feb 8 that given the higher incidence of scrapping among smaller vessels (generally the older ones), it prefers shipping players with a higher composition of smaller ships.

OSK Research said nevertheless, as supply and demand is still imbalanced, it continues to maintain its NEUTRAL call on the sector as the tide has yet to turn positive.

'We have upgraded Malaysian Bulk Carriers (Maybulk) to BUY (TP RM3.10) as we believe that the BDI may soon bottom. However, we have downgraded MISC to NEUTRAL (TP RM8.72) on an earnings cut of 6%-7% as tanker rates continue to languish,' it said.

Source: The Edge, 8 Feb 2011

No comments:

Post a Comment