NOL (N03.SG) is up 0.9% at $2.22, rebounding with the broader market despite operating data showing a continued decline in freight rates in the November 13 to December 31 period volume is low at 1.1 million shares as investors refrain from placing fresh bets ahead of the Lunar New Year holiday.
JP Morgan, which has a Neutral rating, says the sequential softening of average revenue per FEU was not unexpected “given the end of the peak shipping season.”
JP Morgan, which has a Neutral rating, says the sequential softening of average revenue per FEU was not unexpected “given the end of the peak shipping season.”
Morgan Stanley, which has an Overweight rating, says the 5% sequential decline in freight rates was “in line with typical seasonal trends but also as liners remain reluctant to remove capacity in the off-peak season as rates remain at profitable levels.”
 
  It adds " NOL is our top pick amongst the container shipping stocks...(and) is likely to outperform as we believe that NOL’s profitability is likely to improve further in 2011...exceeding consensus estimates. This is due to the lagged impact of higher contract exposure, improved cost base and no new ship commitments in 2011, facilitating flexible deployment.” 
 
A $2.25 cap is tipped for today.