UPDATE: Stifel Upgrades Safe Bulkers (SB) to Buy After One of the Worst Years On Record

Stifel analyst Benjamin J. Nolan upgraded Safe Bulkers (NYSE: SB) from Hold to Buy while raising the price target to $3.00 from $1.50 after 2020 turned out to be one of the worst years on record for the dry bulk market.

The analyst stated "demand for underlying commodities such as iron ore, steel, and aluminum began to accelerate late last year, and we expect should continue to improve through 2022. This may be enhanced by a potentially weaker U.S. dollar as has happened in previous cycles. As this occurs, we estimate overall dry bulk demand growth of at least 3.8% in 2021, and when compared to supply growth of 2.7% the supply/demand fundamentals should drive a favorable environment for the ship operators. As a result, we are upgrading shares of SB to Buy with a $3 target price based on 6.7x our 2022E EBITDA."

For an analyst ratings summary and ratings history on Safe Bulkers click here. For more ratings news on Safe Bulkers click here.

Shares of Safe Bulkers closed at $1.74 yesterday.

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