Chinese containership group Cosco Shipping Holdings has been tipped for further profit after returning to the black in the first quarter.

Jeferries said the tide may finally be turning for the state shipowner after a prolonged downturn.

The bank has raised its target price by 17% to HKD 4.10 ($0.52), from HKD 3.25 now.

It is forecasting a profitable 2017 due to higher transpacific annual contracts.

A stronger-than-expected recovery in spot freight rates would also benefit the company, it said.