UPDATE: Stifel Starts Eagle Bulk Shipping (EGLE) at Buy

Stifel analyst Benjamin J. Nolan initiates coverage on Eagle Bulk Shipping (NASDAQ: EGLE) with a Buy rating and a price target of $62.00.

The analyst comments "We are initiating coverage of Eagle Bulk (EGLE) with a Buy rating and $62 target price. The dry bulk shipping market has enjoyed a strong recovery from 2020, and there is more runway, in our view. Rates have fallen in recent months amid a market outlook shrouded in some uncertainty as it relates to the pace and scale of China's post-lockdown economic recovery and subsequent stimulus and easing port congestion. However, the orderbook is at multi-decade lows, and demand tailwinds, both seasonal and nuanced, within iron ore, coal, and Ukrainian grain should continue to keep demand intact, sustain and drive higher shipping rates, and consequently, earnings power for EGLE. Shares have pulled back and, we believe, present a favorable entry point for investors as there is substantial upside to our $62 target price, which is based on shares trading at a modest mid-cycle multiple of 6x our 2023 EBITDA estimates."

For an analyst ratings summary and ratings history on Eagle Bulk Shipping click here. For more ratings news on Eagle Bulk Shipping click here.

Shares of Eagle Bulk Shipping closed at $41.86 yesterday.

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