UPDATE: Stifel Nicolaus Initiates Navios Maritime Acquisition at Hold on Mixed Factors
In a report published Thursday, Stifel Nicolaus analyst Benjamin Nolan initiated coverage on Navios Maritime Acquisition (NYSE: NNA) with a Hold rating and $5.50 price target.
In the report, Stifel Nicolaus noted, “We are initiating coverage on Navios Maritime Acquisition (NNA) with a Buy rating and a $5.50 price target. Given our expectation for a strengthening product-tanker charter rate environment over the next two years, we believe the shares are likely to see tailwinds as cash flows and asset values improve. With 21 product tankers set to be delivered in 2013, 2014, and 2015, we are expecting rapid growth of earnings and cash flows as well as further diversification away from the original base of crude tanker assets. With the shares trading at just 7.0x our 2015 EV/EBITDA estimate, which reflects only most improvements in product tanker rates and is below the industry average multiple of 7x-8x, we believe NNA shares should appreciate as product tanker rates improve and cash flows materialize.”
Navios Maritime Acquisition closed on Wednesday at $3.61.
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