NOL

NOL: 3Q10 net profit of US$282m, reversing US$139m net loss last yr, and nearly triple 2Q10’s US$100m net profit. Results handily beat analyst estimates of btwn US$157-233m. Revenue surged 55% yoy to US$2.4bn, driven by strong demand and an improved rate environment…

Volume was up 12% to 655k FEU, underpinned by improvement on the Trans-Pacific and Asia-Europe routes. While avg revenue per FEU shot up 41% to US$3120 on the back of improved rates on most major routes and the implementation of peak season surcharges. Mgt expects to remain profitable for full FY10...

Stock trades at 1.35x PBm, 13.2x consensus FY10E PE.
Goldman yesterday raised target to $3.20 from $3 previously, keeps Buy.
Morgan Stanley keeps Overweight with $2.35 target. Notes any dip in share price arising from seasonal 4Q weakness would provide a good opportunity to accumulate.
Other houses may follow with upgrades as well this morning, in view of the positive earnings surprise.