Outlook for Neptune Orient Lines (N03.SG) has improved, with container shipping group expected to return to full-year profitability in 2010 (vs US$740.8 million ($995 million) FY09 loss) as risk of global double-dip recession now reduced, says OCBC Investment Research which has Buy call with $2.41 target.

OCBC notes, US economic data in August encouraging, with factory activity growing faster-than-forecast, payrolls declining less-than-expected, private hiring surprising on upside.

Research house adds, container shipping industry's demand-supply fundamentals remain tight, with only 2.0% of global vessels idle vs 12% year earlier.

Shares +0.5% at $1.99 in light trade, mirroring modest gains in most other Singapore blue chips, but still at hefty 1.4x P/B based on yesterday’s close.

Further upside for rest of session likely minimal, with orderbook quotes suggesting $2.03 cap.