STX Pan Ocean: +2.1% at $13.88. As per our morning highlight, CIMB mentions that “STXPO may perversely benefit from the recent capesize collapse as it has more cargo commitments than available capesize capacity.” 2H10 earnings could see improvement too, as charters for its high-cost vessels expire in mid-2010...
Nevertheless, CIMB lowers target to $13.90 vs $15.60 previously, after lowering FY10-12 earnings estimates by 53%-60% to assume weaker profitability on view operating costs will remain high. Notes bunker, port, cargo costs +73% on year in 1H10.
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