DP World 'likely to post higher H1 profit'

UAE, August 22, 2011

Analysts at UBS and Nomura expect port operator DP World's first-half profit to be higher due to a rise in container volumes and better margins.     

The company, which is the world's third-largest ports operator, in July had said it expected a better profit in the first half as container volumes rose 11 percent.      

UBS said the company's exposure to emerging markets like India and China is positive but it is not a complete shield against concerns of a global slowdown.     

The brokerage cut its price target on the company's stock to $12 from $13, while maintaining its "neutral" rating.    

Analysts at Nomura expect DP World to give a better outlook for the year citing higher margins. They maintained their price target of 1,040 pence and a "buy" rating on the company's London-listed shares.     

"With its 50 terminals across five continents and its focus on emerging markets and origin and destination trades, we expect the outlook to be robust," Nomura said. - Reuters 

Tags: DP World | UBS | nomura | container | vessel |