MARKET TALK: UBS Lifts AP Moller-Maersk Target

[LEFT]0939 GMT [Dow Jones] UBS lifts AP Moller-Maersk (MAERSK-B.KO) target to DKK44,200 from DKK44,100 and keeps at neutral. Says the recent dramatic rise in Asia-to-Europe container freight rates has transformed Maersk Line’s fortunes - at least for the moment. However, believes that the company will remain cautious at its 1Q results on May 16 and that its current guidance appears too conservative. Adds that although the newsflow on containers is positive, the bank believes the situation remains highly volatile, with capacity management, rather than demand, the reason for better rates.

“With surplus capacity we believe that returns are at best capped and at worst we could return to falling rates if a battle for market share resumes.” Shares 0.8% higher at DKK41,800.

  • Dominic Chopping, Dow Jones Newswires[/LEFT]