Cosco

Cosco: Citi maintains Buy with $3.00 TP. Reaffirm view that consensus has underestimated Cosco’s strong transition from a ship to a rig builder. Orderbook has momentum to accelerate further, catalysts emerging via wins in FPSO, windmill installation vessels and rigs, which should boost offshore contribution to reach 80% in 2011 (vs 20% in 2007), enhancing margin resilience. Add that fundamental recovery is not yet fully priced in.