EuroDry Ltd. (EDRY) – Firm Market and Operating Leverage Moves Price Target Up

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Monday, June 07, 2021

EuroDry Ltd. (EDRY)
Firm Market and Operating Leverage Moves Price Target Up

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.

    Dry bulk market thesis intact due to favorable supply/demand fundamentals. The order book and supply growth remain historically low due to high rate volatility, regulatory uncertainty and declining capital availability, while demand is rebounding with global stimulus packages and solid secular trends in minor bulks. Despite the recent pullback, both BKI and BPI charter rates have been strong, especially in 2Q2021. As of last week, BKI charter rates moved up 108% to $24.8k/day and BPI charter rates moved up 122% to $23.5k/day. BKI charter rates averaged $18.5k/day in 1Q2021 and $23.7k/day in 2Q2021 to date, while BPI charter rates averaged $17.2k/day in 1Q2021 and $22.3k/day in 2Q2021 to date.

    No change in 2021 EBITDA estimate.  Last revision included the acquisition, new charters and index rate adjustments. Our last revision to EBITDA included the positive impact of new charters, the Blessed Luck addition and higher TCE rate estimates so we are maintaining our 2021 EBITDA at $29.9 million based on TCE rates of $20.2k/day …



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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