Tuesday, March 08, 2022

Grindrod Shipping (GRIN)
Price Weakness Creates Attractive Opportunity

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, Logistics, Noble Capital Markets, Inc.

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

Recent stock price weakness warranted? We don’t think so and see no fundamental reason for the more than 12% drop, including more than 6% yesterday, seen since hitting a multi-year high of $27.10 last Thursday. The weakness is even more surprising since a competitor highlighted solid Supra market fundamentals last Friday.

Positive bias to 2022 EBITDA and dividend estimates.  Due to strong 4Q2021 results, high 1Q2022 forward cover and management color on the recent earnings call, our 2022 EBITDA estimate is $202.0 million based on TCE rates of $25.5k/day for Supras/Ultras and $22.1k/day for Handys. 1Q2022 is off to a good start with forward cover of 1,474 Supra/Ultra operating days booked at $24.4k/day and 1,103 Handy …

This Company Sponsored 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.