Brokers' Take

Merrill expects more good years at Cosco

MERRILL LYNCH, Jan 12

PROSPECTS for shipping group Cosco Corp remain excellent thanks to high seaborne trade volumes stemming from China's emerging economic might.

Merrill Lynch expects Cosco, whose shares were last traded at $2.62, to grow its net profits 33 per cent a year over the next three years.

Cosco's shipyards are fully utilised and it will expand its capacity this year, the investment bank added.

Merrill's target price is $3.03.

Rating: BUY