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EuroDry Ltd. (EDRY)
Solid Quarter and Well Positioned for Expected 2H2020 Recovery
EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands and trades on the NASDAQ Capital Market under the ticker EDRY. EDRY is the product of a spin-off of the dry bulk fleet by Euroseas (ESEA) completed in May 2018. For every five ESEA shares, ESEA shareholders received one EDRY share. There are currently ~2.2 million EDRY shares outstanding. EuroDry operates in the dry bulk shipping markets. EuroDry’s operations are managed by Eurobulk Ltd., an affiliated ship management company, and Eurobulk FE (Far East) Ltd, which are responsible for the day-to-day commercial and technical management and operation of the fleet. EuroDry employs the fleet on spot and period charters and through pool arrangements.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Another solid quarter as pure dry bulk play. Adjusted 4Q2019 EBITDA of $3.8 million was above our estimate of $2.8 million mainly due to higher than expected TCE rates and and lower opex.
Lowering 2020 estimates. Due to dry bulk market weakness, we are moving adjusted 2020 EBITDA estimate lower to $11.5 million based on TCE rates of $11,671/day down from $13.4 million based on TCE rates of $12,622/day. Given the current dry bulk market environment, we are forecasting that TCE rates weaken slightly in 1H2019 from 4Q2019 levels. There was limited change in the contract status, but one longer term contract will move from a fixed rate to indexed rate in 1Q2020 and...
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.