Movers and SHAKERS
Tuesday, June 23, 2020
Eagle Bulk Shipping (EGLE)
Expect 2H2020 Dry Bulk Market Recovery. Adjusting 2020 EBITDA Estimate.
Eagle Bulk Shipping Inc. is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Dry bulk market volatility impacts 1H2020, but 2H2020 recovery appears likely. The year started off weaker than expected and operating results will be muted when 2Q2020 numbers are reported around August 5th. While the dry bulk market has staged a strong recovery and the Baltic Dry Index (BDI) was up 68% last week alone and is now ~25% above last year, the BDI averaged 592 in 1Q2020 and is likely to average ~750 in 2Q2020, down ~25% from 2Q2019.
Updating 2020 EBITDA estimate to reflect current dry bulk market conditions. To reflect the expected rebound from 1H2020 weakness, we are increasing our EBITDA estimate to $65.5 million based on TCE rates of $10.1k, up from our previous estimate of $60.0 million based on.....
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.