About a year ago DBS Vickers Securities initiated coverage of freight-forwarding company Baltrans with a 'buy' rating. It expected Baltrans' earnings to leap in coming years after its acquisition of competitor Jardine Logistics. However, it said Sars posed a threat and earnings dilution could dampen its near-term attractiveness. Baltrans bought Jardine Logistics for HK$127 million in January last year by issuing 60.3 million new shares at $2.10 each to Jardine. Jardine Logistics generated revenue of about $1.6 billion and losses of $40 million in 2002. The aim was to cut losses to $15-20 million for the six months it would contribute in 2003, break even in 2004 and make a profit of $21 million in 2005. Investors should accumulate at $2.40 to $2.50 with a one-year target of $3.15, said DBS Vickers. The stock was trading at $2.88 about a year ago. In November last year Baltrans said its net profit slipped 58 per cent year on year to $22.9 million in the year to July 2003. Turnover increased 81 per cent to $2.38 billion. The counter closed at $2.25 on Friday.