Morgan Stanley's report states that the recent rise in stock prices has greatly reduced the short-term valuation attractiveness, believing that there is a 70-80% chance of a drop in the stock prices of sitc (01308) and ooil (00316) in the next 15 and 30 days.
Morgan Stanley believes that the spot market will continue to normalize, bringing negative market sentiment. Compared to peers in container shipping industry, due to sitc's potential profit performance, it maintains a rating of 'in line with the market' and a target price of HK$18.3, and also maintains a 'shareholding' rating for ooil with a target price of HK$89.