{"id":325370,"date":"2023-10-18T00:16:25","date_gmt":"2023-10-17T16:16:25","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325370"},"modified":"2023-10-18T00:16:27","modified_gmt":"2023-10-17T16:16:27","slug":"stock-in-focus-international-container-terminal-services-inc-ict-18-oct-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-international-container-terminal-services-inc-ict-18-oct-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: International Container Terminal Services Inc. (ICT) – 18 Oct 2023 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>ICT<\/td><\/tr>
Company Name<\/strong><\/td>International Container Terminal Services Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>18 Oct 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 252.60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Despite macro risks, we maintain our BUY rating on ICT based on consensus Target Price of P252.60 but we warn that sustained downward pressure on global trade could trigger downward revisions to this target price.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

WTO cuts global trade growth forecast<\/h3>\n\n\n\n

The World Trade Organization (WTO) has cut its 2023 projections for global trade growth from 1.7% to 0.8%, while keeping its 2024 forecast nearly unchanged at 3.3%. The WTO cited stubborn inflation, high interest rates, US dollar appreciation, and geopolitical tensions as the main headwinds for global trade growth. The slowdown in the exchange of goods appeared to be broad-based, affecting a wide range of goods but more notably industrial metals, office and telecom equipment, as well as textiles and clothing.<\/p>\n\n\n\n

Not exactly deglobalized, but starting to fragment<\/h3>\n\n\n\n

While deglobalization is not yet upon us, the WTO says that there are signs in the data pointing to trade fragmentation linked to geopolitical tensions. Russia\u2019s invasion of Ukraine, and the resulting trade sanctions and strained relations between members of blocs supporting the opposing sides, was seen as the main cause of this fragmentation. WTO Director General Ngozi Okonjo-Iweala urged countries to avoid protectionism in order to strengthen the global trading framework.<\/p>\n\n\n\n

ICT still a good play despite risks<\/h3>\n\n\n\n

ICT operates 32 terminals in 19 countries across 6 continents, giving it a fairly diversified portfolio of container terminals. Moreover, a third of its terminals are located in Asia, the epicenter of global trade, and it has minimal exposure to conflict areas such as the Black Sea and the Middle East. This has allowed ICT to weather historical slowdowns and post robust growth in container throughput despite plateauing growth in 2022. <\/p>\n\n\n\n

However, we see risk in the apparent decoupling of ICT\u2019s throughput from global trends in the past four quarters, but this could be underpinned by historically robust 4Q volumes.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>