Stock Upgraded: NOL with price target of 1.88 sgd!

CIMB-GK Research has upgraded its rating on Neptune Orient Lines Ltd to "neutral" from "underperform" but slashed its target price to 1.88 sgd, on expectations of lower earnings in the next three years. "We believe any further decline in NOL's share price for now will be unjustified. However, the time is not yet ripe for a brightened outlook on container shipping as well," CIMB-GK said in a note. It said that a leadership transition with the imminent departure of NOL chief executive officer David Lim does not bode well for the company. CIMB-GK also assumed lower EBIT margins because of high fuel costs and declining freight rates. At 11.10 am, NOL was up 0.03 sgd or 1.71 pct at 1.79 on volume of 1.51 mln shares.