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Thursday, January 9, 2020
Grindrod Shipping (GRIN)
Dry Bulker with Tanker Upside – Launching Coverage
Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE.
Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Launching coverage.A high quality asset base, consistent TCE rate outperformance and simplified corporate structure are positives. GRIN has dropped more than 60% since the June 2018 NASDAQ listing and the weak stock price performance creates a compelling risk/reward profile. The current valuation of 5.4x 2020 EBITDA is attractive and our 12-month price target of $11.55/share is based on 6.8x our 2020 EBITDA estimate of $65 million.
Dry bulk fleet profile is attractive due to high modern ECO ownership. Tankers add diversification and upside potential. Newer, modern assets are more fuel efficient and attractive to…
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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.