Wednesday, January 19, 2022

Euroseas (ESEA)
Another Fixture at a High Rate – Increasing Price Target

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Time charter on Astoria feeder ahead of expectations. Consistent with comments from last week’s webinar (see our January 14th note), a 36-38 month time charter on the 2788 TEU Astoria feeder was secured at an average TCE rate of ~$45.0k/day. The time charter rates of $65.0k/day for the first 12 months, $50.0k/day for the next 12 months and $20.0k/day for the last 12-14 months were above expectations. The time charter should generate TCE revenue of $47 million and EBITDA of $36 million over the first 36 months.


No change to our 2021 EBITDA estimate of $55.5 million based on TCE rates of $18.7k/day.  Higher fixture assumptions have positive impact on 2022 EBITDA estimate. We are moving our 2022 EBITDA estimate to $121.8 million from $114.8 million based on TCE rates of $30.7k/day, up from $29.4k/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.