OCBC downgrades Neptune Orient Lines to Hold

OCBC downgrades Neptune Orient Lines (N03.SG) to Hold from Buy as "freight rate weakness can't be ignored."

The house notes that average freight rates have fallen by over 13% on quarter in 2Q13.

While the low-fuel cost environment and ongoing cost-saving initiatives are expected to benefit NOL, the house lowers its forecasts "in light of weaker freight rates and anticipation of a slightly disappointing peak season."

It cuts its target price to $1.17 from $1.38.