Neptune Orient Lines (N03.SG) off 1.4% at 4-session low $2.18, with latest operating data affirming expectations for freight rates to remain soft in near term. Average revenue per box down 4.1% sequentially during 4 weeks ended November 12, marking 3rd consecutive fall. 

 

“(In the) near term, we think that freight rates will fall more sharply, and for longer than current market expectations of seasonal weakness,” says Morgan Stanley, which has Buy call with $2.35 target. 

 

UOB KayHian, which has Buy call with $2.55 target, expects rates to rebound in January as carriers withdraw shipping capacity to cope with falling demand in winter; says NOL's current 1.3X FY11 P/B valuation has priced in seasonal rate weakness. Support tipped at current December low of $2.13.