Monday, September 27, 2021

Euroseas (ESEA)
Solid Visibility Drives Price Target Increase

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.

Container market remains firm and upcoming fixtures should be favorable. While the short charter secured on the Oakland intermediate at a rate of at least $195k/day appears extraordinary, the container market remains firm despite a rising order book and Contex rates have moved higher. The recent charters on the Oakland, Jonathan P and Diamantis P are good examples of a strong container market.


No change in 2021 EBITDA estimate of $55.1 million based on TCE rates of $18.9k/day.  The Oakland intermediate should roll to the new TCE rate in late October and our 4Q2021 EBITDA estimate of $25.3 million is based on a TCE rate of $28.5k/day. Forward cover is very higher and only 9% of 4Q2021 available days are open …

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.