Monday, July 19, 2021
Eagle Bulk Shipping (EGLE)
2021 EBITDA Estimate and Market Float Moving Higher
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.
Moving 2021 EBITDA higher to reflect higher TCE rate assumptions and timing of acquisitions. Our 2021 EBITDA estimate moves higher to $216.9 million based on higher TCE rates of $20.7k/day. Higher TCE rates more than offset updated timing on the closing of acquisitions. After all acquisitions close, operating leverage will be high, with each $1.0k/day change in TCE rates impacting cash flow/EBITDA by $18.4 million, or ~$1.44/share.
Recent sales by large shareholder is a positive event due to reduced overhang, higher public float and higher trading liquidity. ATM equity offerings also expanding share count and public float. In June, GoldenTree Asset Management sold 1.95 million shares in a secondary offering priced at $46.50/share and reduced the ownership position from 3.0 million shares (22.6%) to 1.1 million shares (8.1%) …
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.