NOL

NOL: US$90m 3Q11 loss was even worse than the US$56m loss in 2Q11. Ratings are as per follow:

CCB Intl maintain Buy, TP $0.77, deepening losses, expect container shipping freight rates to continue to fall heading into the 4Q slow season. Expect container shipping stocks to show further weakness in 4Q11.

UBS maintain Neutral, TP $1.16 from $1.19, lower EPS estimates on poor 3Q11, stock now trades at 0.8x 2012E P/BV which has been a historical trough except in 2009 (0.5x), when it reported a US$741m loss. Current share price already reflects the poor results and outlook. Lower TP due to lower book value forecast.

Citi reiterate Sell, TP $0.90 from 1.00, faster than expected earnings deterioration. 3Q results worse than expected.

Macquarie maintain Neutral, TP $1.08, NOL to continue to drift just above $1.00, it will emerge as a leader among global containership operators as the industry shakes out, but this could take several years for this process to complete.

Nomura maintain Reduce, TP 1.00, worse still to come as off-peak season begins.

MS O/w, TP $1.50, losses may continue near term but valuation attractive.