NOL: CIMB has Outperform call with $2.25 target. Expects freight markets to hold up at relatively high levels even into the winter lull, as carrier discipline remains high. Stock price action weak of late, on concerns that industry could be seeing near-term peak in box freight rates, as global economic growth moderates in the second half.
We reiterate our technical call last week. NOL chart looks supportive of a positive long term outlook. Prices have been trending upward, and appear well-supported by the rising 200day MA. The flat RSI and oversold stochastics suggest that a bounce could take place in the near term. Support at $1.88 (200 MA), resistance at $2.20.
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