Cantor Fitzgerald Initiates Star Bulk Carriers Corp. (SBLK) with a Buy

July 17, 2008 8:52 AM EDT

Cantor Fitzgerald initiates coverage on Star Bulk Carriers Corp. (NASDAQ: SBLK) with a Buy rating and a $16 price target.

The firm said, "Star Bulk's focus on long-term charter contracts helps reduce revenue and
earnings volatility, providing a stable platform for its significant dividend payout, in our opinion. We suggest Star Bulk's full time charter coverage should support the company's annual dividend target of $1.40, resulting in an attractive current yield of 13.0%, which is among the highest in the peer group. We expect Star Bulk to benefit from the continued strength in the dry bulk market driven by strong global demand for dry bulk commodities, particularly from China and India, and expanding long-haul trading routes. Furthermore, we suggest the company is well positioned to seek out acquisitions across other dry bulk vessel classes due to its low leverage and strong balance sheet."

Star Bulk Carriers Corp. is a global dry bulk shipping company.

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