Jason Sum, an analyst from DBS, maintained the Hold rating on COSCO SHIPPING Holdings Co (CICOF – Research Report). The associated price target remains the same with HK$10.60.
Jason Sum’s rating is based on a combination of factors affecting COSCO SHIPPING Holdings Co. The company is facing a challenging environment due to newly announced tariffs by the U.S., which could weaken Asia-U.S. trade and put additional pressure on freight rates. Despite COSCO’s strong market position and operational efficiency, these tariffs contribute to a less favorable risk-to-reward scenario for the shipping sector in 2025.
Furthermore, COSCO’s earnings prospects appear lackluster due to softer freight rates, which are expected to decline sharply in 2025. Although disciplined capacity management and ongoing disruptions in the Red Sea may provide some support, the overall outlook remains cautious. The company’s valuation reflects this less robust earnings outlook, but its attractive dividend yield offers some support for the share price, justifying the Hold rating.
Sum covers the Industrials sector, focusing on stocks such as ST Engineering, GE Aerospace, and Boeing. According to TipRanks, Sum has an average return of 5.5% and a 51.06% success rate on recommended stocks.
In another report released on April 1, J.P. Morgan also maintained a Hold rating on the stock with a HK$13.00 price target.