Singapore Hot Stocks-Cosco up on Credit Suisse recommendation

SINGAPORE, April 11 (Reuters) - Cosco Corp rose as much as 3.2 percent to S$2.94 on Friday, with 14 million shares traded, as Credit Suisse said it expected the stock to outperform.

Citi analysts had downgraded the stock to "sell" from "buy" and cut its share price target to S$2.70 from S$4.50, citing margin contraction and slowing order book momentum. For more details, double-click on [ID:nSGC001897].

But Credit Suisse disagreed and kept its "outperform" rating on Cosco with a target price of S$4.40 as it does not expect changes in its estimates based on the net change in Cosco's order book.

"We have reviewed Cosco's order book, contract by contract ... and we do not believe a wholesale meltdown of Cosco's S$9.2 billion order book will occur. Severity of market reaction does not appear to be justified," Credit Suisse analysts said in a client note.

0146 GMT - Straits Times Index <.FTSTI> up 0.96 percent.