Monday, May 10, 2021
Eagle Bulk Shipping (EGLE)
Positive Outlook Boosts Estimates and Price Target
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.
Adjusted 1Q2021 EBITDA million in line with expectations. The year has started off well and EBITDA of $31.5 million was in line with expectations and above 4Q2021 EBITDA of $22.0 million. Given the 1Q2021 forward cover of 93% of available booked at $15,085/day, the quarter was mostly locked in, and it was the third quarter in a row of improving results.
Impressive 2Q2021 forward cover positively impacts 2021 EBITDA and TCE rate estimates. Introducing 2022 EBITDA estimate of $227.7 million. Forward cover of 71% of available days booked at $20.1k/day is impressive and we are increasing our 2021 EBITDA estimate to $201.7 million based on TCE rates of $19.4k/day. Our 2022 EBITDA estimate is based on TCE rates of $20.1k/day and ownership days of 18,980 …
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.