ARGUS Upgrades Eagle Bulk Shipping (EGLE) to Buy - Sees Growth Over Next Several Years

July 2, 2008 11:38 AM EDT

ARGUS upgrades Eagle Bulk Shipping Inc. (Nasdaq: EGLE) from Hold to Buy.

ARGUS analyst says, "We are upgrading EGLE based on our expectations for continued strength in the dry-bulk shipping market. We believe that current dry-bulk shipping rates are sustainable, and note that
Eagle management has moved to take advantage of these favorable rates through acquisitions. (EGLE
currently has 18 vessels operating in its fleet, with an agreement to acquire an additional 35 ships between mid-2008 and 2012.) We thus expect Eagle's earnings to improve over the next several years. We feel there is room for multiple expansion based on our above-consensus 2009 earnings estimate, and are setting a 12-month target price of $44."

Firm's valuation on EGLE - Shares have risen 37% in the past three months and are now trading at the top of their 52-week range. Still, we believe that the stock has additional upside potential and that the charter market will remain strong.

Eagle Bulk Shipping Inc. is primarily engaged in the ocean transportation of a range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes. [SM]

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