Northern Lights

MPC Container Ships (Buy, TP: NOK70.00) - Heavyweight, and still gaini...

We have updated our model for the latest vessel acquisitions, bringing the fleet to 68 vessels, up from 41 in January. A USD300m credit facility was announced in the Q1 presentation that paves the way for further opportunistic growth. Our 2019e DPS indicates a 12% yield on the current share price, and the feeder market balance looks promising. We reiterate our BUY and have raised our target price to NOK70 (66).

Northern Lights

MPC Container Ships (Buy, TP: NOK66.00) - 13% dividend yield for 2019e

We have updated our model for the company’s vessel acquisitions and expect Q1 EBITDA of USD7.9m. A tighter feeder vessel market has boosted freight rates and has started to firm up the S&P market across the board, a trend we believe will continue. 2019e DPS yields 13% to current share price, and we reiterate our BUY with our target price cut to NOK66 (NOK68). The Q1 2018 results are due on 31 May.

MPC Container Ships (Buy, TP: NOK68.00) - Accretive growth

We reiterate our BUY recommendation and have raised our target price to NOK68 (64), following accretive growth with capital raise above NAV. We like the combination of purchasing ships with 42% upside to newbuild parity, while at the same time generating earnings from day one above cash break-even.

MPC Container Ships (Buy, TP: NOK64.00) - Low-risk asset play

We initiate coverage of MPC Container Ships (MPC) with a BUY recommendation and NOK64 target price. We view the company as a low-risk asset play in an attractive niche segment, with a small order book and considerable scrapping potential.