Eagle Bulk Shipping (EGLE) NDR Highlights 10Yr High Spot Rates - Jefferies

Jefferies analyst Randy Giveans reiterated a Buy rating and $38.00 price target on Eagle Bulk Shipping (NASDAQ: EGLE) after hosting a series of client calls with the management team of Eagle Bulk Shipping
who reinforced the thesis of a cyclical dry bulk shipping market recovery based on improving demand for seaborne dry bulk commodities and the best supply-side picture in decades. Key Points include:

• Dry bulk spot rates remain at 10-year highs. Supramax and Ultramax spot rates remain at a 10-year high of ~$23,000/day, triple the levels seen this time last March.
• Asset values are rising in response to the improving charter market.
• Management recently entered into an at-the-market issuance sales agreement for up to $50 MM in proceeds. While the Company has yet to announce any definitive acquisitions, management believes having an ATM program authorized during 2021 in an improving market environment is appropriate and will allow them to engage in ships-for-shares deals should it be accretive to shareholders.
• Delevering should further strengthen the Balance Sheet. EGLE ended 4Q20 with ~$89 MM in cash and its next major bond maturity takes place in 2H22. The Company has yet to enter into refinancing talks this far out, but management is confident that it will have several options for refinancing the $200 MM bond.

The analyst stated "we remain convinced of a cyclical dry bulk shipping market recovery based on improving demand for seaborne dry bulk commodities and the best supply-side picture in decades. With its fortress balance sheet, substantial projected free cash flows from operations, and a new $50 MM ATM program, EGLE has plenty of dry powder to continue to make accretive secondhand acquisitions."

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 $36.30 yesterday.

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