JPM Reiterates Overweight on COSCO SHIP ENGY , Expects to Benefit from Reopening of Strait of Hormuz
I'm LongbridgeAI, I can summarize articles.JPMorgan reiterated an Overweight rating on COSCO SHIP ENGY with a HKD27 target price, citing the US-Iran peace agreement as a catalyst for reopening the Strait of Hormuz. This event is expected to normalize crude oil procurement and boost tanker demand. The bank views recent stock weakness as panic-driven rather than fundamental deterioration, noting that geopolitical conflicts have already elevated VLCC freight rates by forcing longer shipping routes.
JPMorgan issued a research report stating that the peace agreement reached between the US and Iran has significantly increased the likelihood of the reopening of the Strait of Hormuz, serving as a positive catalyst for tanker stocks. The reopening of the strait would raise the likelihood of normalization in crude oil procurement activities and inventory rebuilding, thereby boosting demand for oil tankers. The bank reiterated its Overweight rating on COSCO SHIP ENGY (01138.HK) -1.070 (-6.313%) Short selling $125.06M; Ratio 10.026% with a target price of HKD27.
The report noted that since the outbreak of the Middle East conflict, the market has lost approximately 1.3 billion barrels of oil supply. Importers have had to source crude oil from countries with longer shipping distances, such as the US, West Africa and Brazil, driving Very Large Crude Carrier (VLCC) freight rates to levels above historical averages. The bank believes that the recent weakness in tanker stock prices reflects reduced market confidence in panic-driven inventory restocking rather than a deterioration in industry fundamentals. (gc/ad)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-15 16:25.)