Eagle Bulk Shipping (Buy, TP: USD6.30) - On the right course
Our estimates are unchanged ahead of the Q3 results (due on 7 November), putting us 12% below Bloomberg consensus on EBITDA. We forecast Q3 Supramax sailed-in rates of USD10.9k/day and EPS of USD0.01, versus consensus of USD0.03. Latest datapoints for Chinese coal and iron ore demand remain solid, while increased domestic coal production could hamper growth in the short term. We reiterate our BUY recommendation with a target price of USD6.30.Eagle Bulk Shipping is a holding company. Through its subsidiaries, the company is engaged in the ocean transportation of dry bulk cargoes through the ownership, charter and operation of dry bulk vessels. The company owns a fleet of Supramax/Ultramax dry bulk vessels. Supramax/Ultramax dry bulk vessels are equipped with cargo-handling cranes and grabs. The company provides transportation solutions to a group of customers, including miners, producers, traders, and end users. Typical cargoes the company transports include both bulk cargoes, such as coal, grain, and iron ore, and minor bulk cargoes such as fertilizer, steel products, petcoke, cement, and forest products.
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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