NOL

NOL: CLSA has a trading Buy on NOL with $1.37 TP. House note that heading into results for NOL can be a volatile time with the share price volatile and often breaking with trend. Whilst the market remains difficult, believe that NOL will show the benefits from earlier cost reductions in 4Q even though European rates were under pressure and fortunately a majority of their exposure is to the North American market. House expect a 4Q Operating profit of $76m and net profit of $53m. Maintain trading buy recommendation whilst rates defy oversupply concerns.