Cantor Fitzgerald Reiterates Buy on Eagle Bulk Shipping (EGLE)

April 7, 2008 8:21 AM EDT

Cantor Fitzgerald reiterates its Buy rating on Eagle Bulk Shipping (Nasdaq: EGLE) and lowers its price target from $36 to $34.

The firm said its lowered price target reflects a 12x EV/EBITDA multiple on a FY09 EBITDA estimate of $168 million, which is down from $177 million. Cantor said these lower estimates are based on "the non-cash compensation expense disclosure in the company's 10-K filing, a slightly higher operating expense expectation and our updated interest expense outlook."

Cantor lowers its FY08 and FY09 EPS estimates from $1.72 to $1.58 and from $2.53 to $2.39, respectively.

On the other hand, Cantor expects significant growth opportunities for Eagle moving forward, as the firm sees "a number of vessels that are up for renewal in 2008" that should "be fixed at significantly higher rates than their current charter."

Eagle Bulk Shipping, Inc. provides ocean transportation services for various major and minor bulk cargoes. [BCS]

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