NOL

NOL : Goldman Sachs reiterates Buy with $2.70 TP pegged to 1.1x EV/FV, following grp’s operating stats for April. Note that vol comparisons against last yr still appear healthy at +9% yoy, but achieved monthly rates of -4% yoy were trending slightly weaker than our expectation……

Add that rates typically pick up seasonally from Apr, but not surprisingly, oversupply has put pressure on carrier pricing. Attribute NOL’s lower rates to the weak Asia/Europe trade lane, where the industry is adding the vast majority of newbuild deliveries….

House assumes a 4% qoq decline in rev for the qtr and another uncertainty is bunker fuel prices, which have eased, down 3% since Apr1. At current price, valuations are undemanding, with stock at 0.77x 2011E EV/Fleet Value, representing an unjustified discount of 15% to its peers