• Home
• /
• Local business

Nomura raises Nakilat to ‘buy’, keeps NSCSA
at ‘neutral’

DUBAI — Nomura upgraded Qatar Gas Transport Co (Nakilat) to ‘buy’ from ‘neutral’ saying the company is less exposed to vessel oversupply risks in the very large crude carrier (VLCC) and chemicals tanker market.

The brokerage, however, downgraded Kuwait’s Jazeera Airways to ‘neutral’ from ‘buy’ citing the company’s limited visibility over its profitability outlook.

“While shipping rates have recovered from their 2009 lows, the sustainability of VLCC and chemical tanker rates looks less than clear with vessel overhang risks remaining,” analyst Scott Darling said in a note.

Nomura reiterated its “buy” rating on Dubai’s budget carrier Air Arabia and also kept a ‘neutral’ rating on Saudi Arabia’s National Shipping Co (NSCSA).

The brokerage said it prefers the world’s largest shipper of liquefied natural gas (LNG) Nakilat over NSCSA as the company’s business model is less immune to shipping rate fundamentals, but more linked to the ramp-up of Qatar’s LNG exports.

“With robust passenger demand growth, jet fuel prices essentially range bound and a pickup in hub traffic in the Middle East, we continue to remain positive on low cost airlines in the region,” the brokerage added.