Market Overview

UPDATE: Stifel Upgrades Star Bulk Carriers; Announces Price Target

Related SBLK
42 Biggest Movers From Yesterday
40 Stocks Moving In Wednesday's Mid-Day Session
Star Bulk Carriers Corp. Announces Results of Its —…–8 Annual Meeting of Shareholders (GuruFocus)

In their Thursday morning research summary, Stifel upgraded Star Bulk Carriers (NASDAQ: SBLK) from Hold to Buy and announced a price target of $18.

To start his summary of Star Bulk Carriers, Benjamin Nolan pointed out that although Star Bulk's adjusted earnings were slightly below his estimate ($0.07 vs. $0.08), it beat the Street consensus ($0.05).

Turning to a more macro view, Nolan looks to the recent decrease in iron ore prices to drive an expected ramp up in iron ore demand by Chinese steel producers. In terms of how this will affect Star Bulk Carriers, Nolan notes, "We believe the dry bulk market is on the cusp of a cyclical recovery. Specifically, we expect Capesize vessels to be the primary beneficiary as they are mainly used to transport iron ore to China. Given Star Bulk's large position in Capesize vessels and substantial operating and financial leverage, we believe the company should be ideally positioned to benefit from rate improvements."

Looking to the future, Nolan has reduced the estimate for 2015 EPS based on a need to raise equity due to high capital expenditures. However, he believes as capital expenditures decrease Star Bulk should be able to generate over $100 million of free cash flows by 2016.

At last check, Star Bulk was trading up just over four percent at $15.74

Latest Ratings for SBLK

Aug 2018Stifel NicolausMaintainsBuyBuy
Jun 2018Morgan StanleyMaintainsOverweightOverweight
Apr 2018Stifel NicolausUpgradesHoldBuy

View More Analyst Ratings for SBLK
View the Latest Analyst Ratings

Posted-In: StifelAnalyst Color Upgrades Price Target Analyst Ratings


Related Articles (SBLK)

View Comments and Join the Discussion!

Latest Ratings

SBEvercore ISI GroupUpgrades4.5
PTIRBC CapitalUpgrades0.0
GPSJP MorganDowngrades24.0
GIIIB. Riley FBRUpgrades47.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Stocks Hitting 52-Week Lows

Mid-Morning Market Update: Markets Open Higher; Staples Plans To Close 225 Stores