Brokers' Take

Neptune Orient Lines | Buy

Nov 19 close: S$0.76

Target price: S$1.01

UOB Kay Hian Research, Nov 19

"Buy" on cheap valuation. Neptune Orient Lines' (NOL) share price has dropped 22 per cent since end-June to a five-year low, driven by the expectation of a third year of losses, weak freight rates, port congestion on the US West Coast and the potential sale of its profitable logistics business. We think the market has overacted to these negative factors. Although NOL is likely to see a t…