2020 Bulkers (Buy, TP: NOK164.00) - Sound returns in turbulent markets
We have updated our model to reflect the latest fuel spreads and recent downturn in dry bulk rates. Despite lowering our near-term estimates, we see potential for significant shareholder returns, with a dividend yield of ~25% throughout our forecast period. We also believe the company’s modern Newcastlemax fleet, alongside decent leverage, offers attractive exposure to the sector as we await a Chinese import comeback. We reiterate our BUY and have raised our target price to NOK164 (153).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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.