EuroDry Ltd. (EDRY) – Good News of Solid Results, New Charter and Fleet Expansion Drives Price Target Higher

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Friday, May 21, 2021

EuroDry Ltd. (EDRY)
Good News of Solid Results, New Charter and Fleet Expansion Drives Price Target Higher

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.

    Adjusted 1Q2021 EBITDA stronger than expected due to higher TCE rates. 1Q2021 EBITDA of $4.0 million (adjusted for dry dock expenses) was slightly higher than expected due to higher-than-expected TCE rates of $14,924/day. TCE revenue of $9.4 million was above expectations due to the positive impact of TCE rates tied to indices. The fleet of 7.0 vessels did not change and ownership days were 630 with 0 idle days.

    Fleet expanding.  The Blessed Luck, a 2004-built Panamax, will be acquired shortly for $12.1 million. The acquisition will be financed with 8% debt, including a seller note of $5 million and a bridge loan of $6 million from a related party. Discussions on more permanent financing are under way and the new loan should financing about 65% of the acquisition, or ~$8 million. The Blessed Luck will be …



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. 

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