UPDATE: Sterne Agee Initiates Coverage On Star Bulk Carriers As New Dry Bulk Heavyweight

In a report published Wednesday, Sterne Agee analyst Sal Vitale initiated coverage on

with a Buy rating and $13.00 price target. In the report, Sterne Agee noted, “In just the last few months, Star Bulk has grown from a fleet of 28 vessels to a diversified fleet of 103 vessels on a fully delivered basis. Thirty of its vessel orders will deliver in '15, driving outsized EBITDA growth over the next few years. In addition, SBLK offers investors a platform to invest in a fleet with a high—and potentially growing—proportion of high quality, fuel-efficient eco-ships that are expected to garner a day rate premium to conventional dry bulk vessels.” Star Bulk Carriers closed on Tuesday at $8.85.