NOL is down 3.1% at S$1.56, taking its decline to 8.8% since June 8, when it announced the resignation of Eng Aik Meng as President of its APL shipping biz, while CEO Ronald Widdows will retire Dec 31. UBS has concerns abt leadership change, due to possible strategy shift post the reshuffle, which could cause near-term uncertainty for NOL...
It also notes reports from independent shipping consultancy Alphaliner, mentioning APL has recently lost mkt share after scaling back expansion in the past few mths. Revises down its 2011/12E EPS est to $0.11/$0.14 from $0.16/$0.19 to factor in the weaker-than-expected freight rates and rising oil price...
It tips a 7.2% yoy increase in 2011 rev, mainly driven by volume growth (up 6.8% yoy). The house maintains its Neutral call and cuts its price target to $1.78 from $2.46.
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