Evergreen Marine Corp (
Evergreen Marine, Asia's largest container shipping company by fleet size, had its rating cut to ``underperform'' from "neutral," CSFB analyst Peter Hilton said in a report dated yesterday.
Wan Hai Lines Ltd (萬海航運) and Yang Ming Marine Transport Corp (陽明海運) had their ratings cut to "neutral" from "outperform."
"The strong probability that 2006 will be a year of declining rates and profit requires" a conservative valuation, the report said.
The rating cut by CSFB came after Wan Hai's vice chairman Chen Po-ting (
Chen projected rates falling by 15 percent from now to then, the paper said.
In a move to ease market jitters following Chen's bearish guidance, Wan Hai vice president Jason Lee (
Lee, however, said the industry may see a cyclical downswing in 2007.
Still, Hilton said it is "too early to sell" as the "best exit point" is late first quarter next year. Asian container shipping companies may see earnings upgrades next year and the sector traditionally does well late into the first quarter, the report said.