2020 Bulkers (Buy, TP: NOK151.00) - Consistent earner
2020 Bulkers managed to deliver an 8% run-rate yield in a rather soft quarter, which, in addition to trading at 0.85x P/NAV, offers downside protection to a cloudy macro outlook in our opinion, and potential upside on still-strong supply-side fundamentals. However, feeble scrubber premia are working against the 2020 fleet, with H2 set to average just above USD1.0k/day, versus USD6.0k/day a year ago. We reiterate our BUY but have cut our target price to NOK151 (161).2020 Bulkers Ltd is a Bermuda-based owner and operator of cargo ships. The Company owns as subsidiaries 2020 Bulkers I Inc and 2020 Bulkers II Inc in Liberia. Entities are parts to shipbuilding contract with New Times Shipbuilding Co. Ltd. for construction and delivery of Newcastlemax dry bulk vessel. The Company's main shareholders comprise Magni Partners and Titan Opportunities Fund.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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