Brokers' Take

Cosco Corporation

Surge in contracts boosts Cosco's outlook

COSCO Corp recently secured shipbuilding contracts worth US$1.2 billion (S$1.85 billion), lifting the value of the contracts it has won so far this year to $4.4 billion.

As a result, UOB Kay Hian has raised its earnings estimates for Cosco this year, 2008 and 2009 by 2.4 per cent, 8.6 per cent and 11.2 per cent respectively on the back of new contract wins and better freight rates.

The brokerage maintained its 'buy' recommendation but raised Cosco's target price to $4.12, up from $3.50.

Cosco lost four cents to $3.38 last Friday.

UOB KAY HIAN, June 15
Rating: BUY