NEW YORK, Oct 18 (Reuters) - Shares of China Cosco , the country's largest shipping group, may be overpriced, according to a report in business weekly Barron's.
Over the past year, the stock has risen more than 150 percent, compared with a 51 gain for Hong Kong's Hang Seng index. Yet, UBS analyst Damien Horth expects China Cosco to lose money this year, next year and in 2011, the paper said in its October 19 issue.
The company's stock trades at its current levels because of its large size and liquidity. But Horth said the valuation is 'unsustainable,' the paper said.
China Cosco currently goes for HK$10.36, but were it to trade in line with the rest of the industry, which includes Pacific Basin Shipping and China Shipping Container Lines, it would trade at HK$5 to HK$6, the paper said.
(Reporting by Franklin Paul; Editing by Steve Orlofsky) Keywords: CHINACOSCO/SHARES (Email: Franklin.Paul@thomsonreuters.com; +1 646 223 6195; Reuters Messaging: Franklin.Paul.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Over the past year, the stock has risen more than 150 percent, compared with a 51 gain for Hong Kong's Hang Seng index. Yet, UBS analyst Damien Horth expects China Cosco to lose money this year, next year and in 2011, the paper said in its October 19 issue.
The company's stock trades at its current levels because of its large size and liquidity. But Horth said the valuation is 'unsustainable,' the paper said.
China Cosco currently goes for HK$10.36, but were it to trade in line with the rest of the industry, which includes Pacific Basin Shipping and China Shipping Container Lines, it would trade at HK$5 to HK$6, the paper said.
(Reporting by Franklin Paul; Editing by Steve Orlofsky) Keywords: CHINACOSCO/SHARES (Email: Franklin.Paul@thomsonreuters.com; +1 646 223 6195; Reuters Messaging: Franklin.Paul.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
