EuroDry Ltd. (EDRY) – Firmer Dry Bulk Market Drives Up Price Target

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Thursday, February 18, 2021

EuroDry Ltd. (EDRY)
Firmer Dry Bulk Market Drives Up Price Target

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 4Q2020 EBITDA better than expected due to higher TCE rates. 4Q2020 EBITDA of $2.3 million (adjusted for dry dock expenses) was slightly higher than expected due to indexed TCE rates. Relative to our estimates, TCE revenue was $1.0 million higher, TCE rates were ~$1,551/day higher, and shipping days of 623 were 8 higher. Higher TCE revenue and lower opex more than offset higher G&A expenses and management fees.

    Moving 2021 EBITDA estimate to $16.5 million from $8.8 million to reflect indexed rate exposure and recent dry bulk market developments.  The prospects look good for the dry bulk market, and we are increasing our 2021 EBITDA estimate to $16.5 million based on TCE rates of $14.4k/day, which is well above our previous EBITDA estimate of $8.8 million based on TCE rates of $10.1k/day. Most of the fleet …



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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