SINGAPORE: DMG & Partners has upgraded Singapore's transportation and storage firm Goodpack to buy from neutral, but cut its target price to S$2.00 from S$2.12.
STATEMENT
DMG has downplayed the business impact of the Japan's earthquake crisis on Goodpack, the world's largest owner of Intermediate Bulk Containers (IBCs), as only 8 to 9 percent of the firm's revenue is attributable to Japan.
"Given most of Goodpack's customers operate in central and southern Japan, most of the Intermediate Bulk Containers (IBC) are ferried in and out of Japan via the Tokyo and Kobe ports which have already resumed operations," the brokerage said in the statement.
DMG added that the only customer to cancel leasing of Goodpack's IBCs is based in Sendai, one of the worst-hit towns in Japan's quake, but the customer accounts for less than 0.5 percent of Goodpack's revenue.
At 0158 GMT, Goodpack shares are up 3.45 percent at S$1.80.
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