Tuesday, November 30, 2010
NOL: Morgan Stanley tips as top container shipping pick; reiterates Overweight rating with $2.35 target. Likes NOL for its higher relative exposure to Intra-Asia and Transpacific routes, where demand will likely be underpinned by lower new-build ship deliveries, and greater potential for increased slow steaming measures. Notes freight rates likely to trough soon, with demand to pick up seasonally prior to Chinese New Year. Says current dip provides opportunities to accumulate stocks.