BaML ups Yangzijiang target, sees new orders

Bank of America Merrill Lynch (BaML) raised its target price on Singapore-listed shipbuilder Yangzijiang (YAZG.SI) to $2.12 from $2.08, citing a potential rise in orders for large containership orders from mid-2012.

It maintained its buy rating on Yangzijiang. The shares were up 1.5% at $1.385, and have soared 52% this year.

BaML said the company could see its first rig building contract wins in the second half of the year, helped by support from the Chinese government.

 

It also noted that shipbreaking, where ships are broken up for scrap recycling, could also see a boom amid low freight rates, as 27% of dry bulk carriers globally will be 20 year or older in the next five years.