CWT

CIMB upgrades CWT to Outperform & keeps target price at $1.03. While slower global economic recovery may dull earnings prospects of its freight forwarding business, growth in warehousing operations may mitigate impact as the latter is typically stable through downturns. With warehousing capacity expansion on track, contract logistics will continue to provide a safety net to earnings. Acquisitions of logistics companies dealing in soft commodities are potential share price catalysts.