Shipping sector turnaround making NOL an attractive purchase
Earnings will rise in 2013.
"We expect more earnings upgrades for 2013 by the street to drive up share price," said UOB Kay Hian in a new container shipping sector report.
The report cited four earnings drivers for the coming year, including a) the sale of its office building; b) stronger-than-expected rates increase on the AE trade lane in 4Q12 and 1Q13 backed by intact capacity discipline, c) potential 15-20% improvement in TP contractual rates, and d) recent decline in bunker prices.
"Longterm earnings drivers could be improved efficiency alongside larger vessels being delivered in 2013-15," UOB Kay Hian added.