Eagle Bulk Shipping (Buy, TP: USD77.00) - Delivering on DPS
Following the Q1 results, we have reduced our EBITDA estimates by an average of 2% throughout our forecast period. We find Eagle Bulk’s recent fixing of Madison Eagle for 12 months at USD32.5k/day supports the near-term outlook and we now base our estimated DPS on 40% of adjusted EPS. Despite its convertible bond affecting the stock’s valuation, we reiterate our BUY and have lifted our target price to USD77.0 (71.0) as we expect average dividend yields of ~8% and sustained strength in the mid-size segment to provide support.
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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