Danaos (DAC) PT Raised to $60 at Jefferies After Hosting Management Meetings
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Jefferies analyst Randy Giveans raised the price target on Danaos (NYSE: DAC) to $60.00 (from $50.00) after hosting a series of client calls with the management team. The containership market is likely to remain strong and that DAC is well positioned to generate a substantial amount of secured free cash flow in the coming quarters. The Company has rechartered multiple vessels in recent weeks at 3-4x previous
rates for 12-36 months, likely to result in >$850 MM combined EBITDA in 2021 and 2022.
The analyst reiterated a Buy rating, stating "DAC management stated it has fixed numerous charters in recent weeks at rates 3-4x higher than the previous contracts, with durations extending 12-36 months as liners are locking in tonnage for extended periods of time. As a result of these recent charters, Danaos currently has >95% of operating days and revenue fixed during 2021 and ~60% of operating days and ~70% of revenue fixed in 2022."
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