UPDATE: Euro Pacific Capital Initiates Coverage on Box Ships on Mixed Factors
In a report published Thursday, Euro Pacific Capital analyst Mark Suarez initiated coverage on Box Ships (NYSE: TEU) with a Neutral rating and $4.50 price target.
In the report, Euro Pacific Capital noted, “TEU leases containerships to leading container operators under short-to-medium term fixed rate contracts. Our NEUTRAL rating on the stock is based on a positive free cash flow profile and an improving balance sheet, with potential for upside growth via acquisitions, tempered by the likely opening of six vessels for charter in C14 and two more in C15. We believe the stock will benefit from a gradually improving demand/supply balance in the containership segment starting in C14.”
Box Ships closed on Wednesday at $4.19.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.