NOL

NOL: Deutsche maintains Sell with $1.66 TP. Note that house recently met with mgt, who note that rate pressures continue, esp on the Asia-EU Trade, despite load factors that are close to 100% as vol picks up post Chinese New Yr. At current Spot Asia-EU Rates, grp thinks that the whole industry is losing money. NOL is still looking to place orders for new build vessels because they think it will lower their cost base and help them replace charter-ins when they expire….

With the rise in fuel prices and falling rates, house tips 1Q11 results to be depressed, and expect transpacific negotiations to be challenging for the liners. House TP is 24$ below consensus.