Wednesday, September 22, 2010


Cosco: Citi reverses call, upgrades to Buy from sell, raises target to $2.30 from $1.40. Ups earning est by 23-26% for 2011-12E, on improving outlook for shipbuilding after recent period of large losses. Likes Cosco’s major transition towards offshore, given increasing complexity of rig and FPSO works handled, and penetration into windmill vessels. Believes Cosco’s margins have likely bottomed, whereas Street still underestimating Cosco’s ability to deliver on margins...

Catalyst to come from new orders, with Cosco tipped to win 1 deepwater rig and 2 additional FPSOs from Sevan Marine in the near term.

No comments:

Post a Comment