[ET Net News Agency, 8 December 2017] UBS Global Research lifted its target price for
COSCO Shipping Ports (01199) to HK$10.5 from HK$10.1, and upgraded its rating to "buy"
from "neutral".
The research house now thinks evidence supports its strategy of aggressive expansion in
China; this marks a change from its previous expectation that it would not be active in
port consolidation.
UBS thinks that COSCO Ship Port deserves a re-rating, and that its historical
significant valuation discount to peers is no longer valid. It sees its recent share-price
weakness as a good buying opportunity.
UBS also thinks market concern about a significant impact from a potential port tariff
cut is overdone, as it expects a limited impact. (KL)