Thursday 16 February 2012

Investment earns DP World an upgrade - The National

DP World, the world's third-largest port operator, has been upgraded from "neutral" to "outperform" by Credit Suisse.

The financial services group said its decision was based on the Dubai-based ports operator's investment in its existing and new facilities, and the fact that its main operations are in regions less affected by the economic downturn.

Credit Suisse raised its target price to US$14.70 from $12.48 and said its valuation was back to mid-2009 levels - at the low end of its 0 to 35 per cent premium to global peers on one-year forward EV/Ebitda, a formula used to determine the value of a company. According to the Credit Suisse analyst Vincent Resillot DP's decision to rely on emerging markets to offset a potential economic slowdown meant it was "geographically hedged", as growth has resumed, especially in the Gulf, Africa and Latin America.

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