NOL: Counter performed poorly over the last 12 months, down 20% (versus the FSSTI -13%) due mainly to the weakness in freight rates.
While Deutsche expects 2H to continue to see downward pressure on rates, house is more optimistic on 2016 where industry supply growth will materially decline, which should be positive for earnings.
The stock is trading at 0.6x 2015E P/B, which is the lowest in the sector and one standard deviation below 10-year historical mean.
Deutsche upgraded from Hold to Buy. with TP of $1.10.