Expectations of further increases in asset prices and freight rates has seen DNB Markets take up coverage of MPC Container Ships with a buy rating.
Analysts led by Nicolay Dyvik initiated coverage of the shipowner, which has grown a fleet of 41 vessels since launching a year ago, with a NOK 64 per share target price.
Dyvik and colleagues Jorgen Lian and Mats Bye explain asset prices in the sector still have a 48% upside to newbuilding parity, even at historically low levels.
They explain that the target price is based on a 34% rise in the present fleet value, which would see it climb from $354m to $474m.
At the same time, the DNB analysts believe fleet utilization will climb to 88% to 2019, pushing rates for boxships of 2,600 to 2,900 teu up by 70% to $14,700 per day.
MPC’s fleet includes 38 fully owned vessels.
