COSCO SHP SG
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BEIJING (XFN-ASIA) - DMG
& Partners said it has downgraded its recommendation on Cosco Corp
to "sell" and lowered its price target to 0.86 sgd as the company will
be pressured by possible order cancellations, delivery delays and
limited new orders amid the global economic slowdown.
Cosco's shares were down 13.5 pct at 0.865 sgd this morning in Singapore.
In a note, DMG said the near- to medium-term visibility of the company, China's leading shipyard, has become clouded.
"Bad news, bad news and more bad news ... the drastic changes in
macroeconomic factors over the past two weeks have ended the shipping
multi-year boom cycle abruptly," DMG said.
"The market for
capital intensive bulk carriers, already under close scrutiny from
influx of new supply entering the market in 2009 and falling freight
rates, are now challenged with virtually no order demand, delivery
delays and cancellation possibilities," it added.
