Monday, February 01, 2021

Euroseas Ltd. (ESEA)
Container Market Strength Drives Price Target Higher

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Container market off to good start. Favorable market thesis intact. While the past two years were negatively impacted by extreme factors, the container supply/demand fundamentals appear favorable, more charters with longer terms have been signed at higher TCE rates and the year has started on a better-than-expected note.


Additional days likely to be booked at higher market rates over next two-to-three quarters.  Two intermediates and six feeders should roll to new fixtures this year. The Oakland is indexed at Contex 4250 minus 10% and is currently earning more than $20k/day, up from the 4Q2020 average of $13.2k/day. The Synergy Busan should see a higher rate after it stops working at $8.1k/day in February 2021 …

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.