OCBC Investment Research initiated coverage of Singapore-listed Chinese shipbuilder Cosco Corp (Singapore) with a hold rating and a target price of $0.98, citing weakness in the shipping industry.
Cosco shares were 1.4% higher at $1.07, and have surged 22.3% since the start of the year.
OCBC said the operating environment for the dry bulk shipping and shipbuilding segments remains difficult due to an oversupply of vessels and fewer orders for shipbuilders.
Cosco has ventured into offshore engineering, and its lack of experience in building rigs, jack-ups and drillships means it may take some time before productivity improvements are seen, OCBC said.
No comments:
Post a Comment