NOL

Morgan Stanley upgraded NOL to Overweight, raised target price to $2.35 vs $1.85 based on 1.4x P/B; believes current price already factored in concerns that Europe’s debt issues could result in sharp collapse in container shipping volumes, fall in freight rates. Expects improving US demand to partly offset weakness in European demand. Adds shipping companies' focus on gradual, disciplined capacity expansion will maintain freight rates, profitability and NOL to revert to profitability sooner the implementation of the Transpacific contract rates and strength of Asia-Europe freight rates over the past 5 months.