[ET Net News Agency, 8 November 2017] Jefferies Research lowered its target price for
COSCO Shipping Holdings (01919) to HK$4 from HK$4.9, and downgraded its rating to "hold"
from "buy".
The research house said the combination of higher spot contracts and largest orderbook
and utilization focus could lead to COSCO's freight rates under-performing the market.
Further, the OOIL joint-offer is likely to increase gearing given the planned A-share new
share issuance is for existing newbuilding orders.
Jefferies turned less optimistic on the container shipping sector. It forecast container
shipping demand growth to outpace supply growth, with average freight rates 0.8% and 4.7%
higher y-y in 2018 and 2019. However, profitability is in the carrier's own hands as it
believes the market share and load factors obsession remains whenever the sector is
profitable. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
01919 COSCO SHIP HOLD
Nominal 
9.410 +0.160 (+1.730%) Others
08/11/2017 13:55
[I-bank focus]Jefferies downgrades COSCO Shipping to HK$4
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