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Scorpio Bulkers, Star Bulk Carriers upgraded to Buy at Stifel

Published 04/23/2018, 03:23 PM
Updated 04/23/2018, 03:23 PM
© Reuters.  Scorpio Bulkers, Star Bulk Carriers upgraded to Buy at Stifel
  • Scorpio Bulkers (SALT +9%) and Star Bulk Carriers (SBLK +4.8%) surge after Stifel analysts upgrade both to Buy from Hold, saying the dry bulk shipping market is "positioned for profitability" and modest further improvements.
  • Stifel says SALT shares have sufficient upside potential to warrant buying at current levels given their 25% discount to the firm's net asset value estimate; the upgrade comes despite reporting a larger than expected Q1 loss.
  • The impetus for the SBLK upgrade was its Friday announcement of the acquisition of 16 modern dry bulk carriers for $433M, which Stifel estimates was completed below NAV and should be meaningfully accretive to earnings and cash flows.
  • Stifel's stock price targets are $9 for SALT and $15 for SBLK.
  • Now read: Star Bulk Vessel Acquisition Leads Us To Upgrade Our Target Price


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