Eagle Bulk Shipping (Buy, TP: USD60.00) - Acquired Oaktree’s 28% stake
Eagle Bulk has repurchased Oaktree’s 28% stake in the company, securing control of a strategic position and removing a potential overhang. The transaction is directly accretive to NAV, and boosts running EPS and DPS, but came at a premium to its recent share price. The company’s reported LTV increases from 15% to 34%, but remains comfortable and should not change its dividend policy (30% of net income). We reiterate our BUY but have trimmed our target price to USD60 (61).
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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