Here’s what analysts have to say about NOL’s $1.6b APL logistics sale

Expect NOL’s stock to rally this week.

Analysts expect Neptune Orient Lines’ share price to make further gains this week on back of its proposed $1.6b sale of APL Logistics.

Raymond Yap of CIMB notes that NOL’s share price should jump with the unlocking of the value of APLL into the balance sheet.

He added that apart from lowering NOL’s extremely high gearing, the deal will release funds to help APL stay relevant in shipping and investors should be able to enjoy a bumper 10.7% dividend yield this year.

Meanwhile, Nicholas Teo of CMC Markets notes that apart from the sale, NOL’s share price is also expected to be buoyed by positive news from ports in the US West Coast.

“Late Friday, it was announced that the US West Coast dockworkers and their employers reached a five-year contract deal. This averted a shutdown of 29 ports that could have cost the US economy and NOL heavily. This new development from the West Coast Ports could offer traders a reason to bid up the stock again,” Teo wrote.