Japanese Energy Suppliers' Share Prices Likely to Reflect High Shipping Rates
Dow Jones
Sep 07
0643 GMT - Share prices of Japanese energy suppliers are likely to reflect high shipping rates, Nomura's Masaharu Hirokane says in a research report. The market hasn't priced in structural change in energy suppliers, namely ships having to travel longer distances, caused by deterioration in the Middle East situation, the analyst says. Nippon Yusen K.K. will likely see profit growth in its energy business this fiscal year, as some of its crude oil tankers are poised to reflect higher contract rates for the Middle East to Far East route. Contract rates on this route have risen the most in crude oil tanker transport contracts, the analyst notes. Nomura raises the stock's target price to 8,800 yen from Y7,100 with an unchanged buy rating. Shares closed 3.7% higher at Y7,420.
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