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Global Ship Lease shares target raised to $29 on robust Q1 results

EditorLina Guerrero
Published 05/16/2024, 02:09 PM

On Thursday, a Jefferies analyst increased the price target for Global Ship Lease Inc . (NYSE:GSL) shares to $29.00, up from the previous target of $26.00, while reiterating a Buy rating on the stock. The upgrade follows the company's strong performance in the first quarter, where it added $54.6 million to its already substantial contracted revenue backlog, which now stands at $1.6 billion.

The company has also declared its regular dividend of $0.375 per share and disclosed that it repurchased $5 million of its shares during the quarter. The analyst noted that the ongoing rerouting of ships away from the Red Sea has contributed to a continued rise in charter rates throughout the year.

Global Ship Lease is said to be in a favorable position to benefit from the increasing charter rates, with 20 of its ships scheduled to become available in 2024. This availability could allow the company to capitalize on the favorable market conditions and potentially secure higher rates for its vessels.

The report highlighted the company's solid quarterly performance and strategic positioning, which contributed to the decision to maintain a Buy rating and raise the price target. The increased target reflects the firm's confidence in Global Ship Lease's ability to continue its strong performance and leverage market opportunities.

InvestingPro Insights

Global Ship Lease Inc. (NYSE:GSL) has demonstrated robust financial health and market performance that supports the analyst's optimistic outlook. According to InvestingPro data, GSL boasts a highly attractive P/E ratio of 3.18, which further adjusts to an even lower 2.78 for the last twelve months as of Q4 2023. This is complemented by a PEG ratio of just 0.4 over the same period, indicating that the stock may be undervalued given its earnings growth potential.

InvestingPro Tips highlight the company's consistent shareholder returns, with a dividend yield at 6.03% as of the latest data, and a track record of raising its dividend for three consecutive years. Additionally, the stock's price is nearing its 52-week high, trading at 99.49% of this peak, reflecting strong market confidence. For those interested in deeper analysis, there are 17 additional InvestingPro Tips available, offering a comprehensive look at GSL’s financials and market performance.

For readers looking to leverage these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. This could be a valuable tool for investors aiming to make informed decisions based on real-time data and expert analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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