UPDATE: Citigroup Upgrades Safe Bulkers on Good Market Position

In a report published Tuesday, Citigroup analyst Christian Wetherbee upgraded the rating on

from Neutral to Buy, and raised the price target from $6.00 to $10.00. In the report, Citigroup noted, “We are upgrading Safe Bulkers to Buy as the company is well positioned to grow earnings and cash flow from early improvements in dry bulk fundamentals. The company has also been successful preserving balance sheet flexibility through the downturn, allowing for accretive growth from its pipeline of 10 newbuild deliveries. Rates for mid-sized vessels continue to trend higher (Panamax rates are up 70% YTD off a very low base) and shippers are becoming more willing to charter vessels for longer durations at higher rates, which appears to be a sign of confidence in further improvement. Coupled with a modest dividend raise this quarter, we believe shares are poised to see potentially meaningful upside in the coming quarters.” Safe Bulkers closed on Monday at $7.94.