G Sachs believes that the reopening of the Strait of Hormuz and the potential lifting of sanctions on Iranian oil could significantly benefit the transportation sector in China, particularly for tanker operators like COSCO SHIP ENGY, which has the largest potential upside. The bank expects substantial earnings growth for the company due to increased demand and higher charter rates. However, it remains cautious on the container shipping sector, maintaining a Sell rating on COSCO SHIP HOLD due to potential risks from geopolitical changes and capacity adjustments.
