Freeseas Gets Buy Rating (FREE)

Freeseas Inc. (NASDAQ: FREE) has reported its 1Q10 EPS and revenues at $0.09 and $14.5 million respectively. According to a report released by Dahlman, Rose & Co., Freeseas (FREE) has shown an improvement from the contracts the company secured in late 2009 and earlier this year. The company uses a majority of its vessels on short-term time charters between 30 and 60 days, this provides the company with significant exposure to short-term swings in the Handysize market.

The company has been given a ‘Buy’ rating with a price target of $3. The price estimate is based on 6.0x 2010EV/EBITDA. The report has stated the dry bulk market, especially that of smaller vessels, has performed very well so far and Freeseas is likely to benefit from it.