2020 Bulkers Minor model adjustments
We have updated our estimates following the Q1 report and latest commercial update. We remain concerned about the outlook for the dry bulk market, versus the elevated vessel valuations and sentiment. On our numbers, 2020 Bulkers is valued at P/NAV 1.06x, above the peer group average of ~0.86x. Despite the company boasting impressive financial strength and a modern fleet with associated earnings premiums to buffer lower freight rates, we remain cautious on the potential downside should market tailwinds shift to headwinds. We do not consider our estimate changes to be material, and we have not changed our SELL recommendation. We have lowered our target price from NOK154 to NOK153.2020 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.