Dahlman Rose Reiterates Hold Rating on Starbulk Carriers (SBLK)
August 11, 2010 9:07 AM
Dahlman Rose & Co. is out with a research report this morning, where it reiterates its Hold rating on Starbulk Carriers (NASDAQ: SBLK); it did not provide a price target for the stock.
The Dahlman analysts cited the company’s recent earnings report, which was better than expected due to higher revenues and tighter cost controls. The analysts believe the company is on the “right track operationally,” with improved visibility and a good growth profile.
The analysts noted that SBLK’s results have been held back in the past due to unforeseen events, such as utilization shortfalls or unexpected charter-in expenses to service COAs, though they believe that the company has put this behind it.
As for valuation, the Dahlman analysts remarked, “Star Bulk is in improved position heading into what we expect to be a stronger dry bulk market in 4Q10. Although we expect SBLK shares to close its gap to NAV, which we assess at $3.29/share, we expect greater upside for companies with higher spot exposure and younger fleets. As such, we maintain our Hold rating, although expect SBLK shares to see support in the coming months.”
