EuroDry is well positioned to benefit from a strengthening drybulk market and should attract more investors as a brand new pure play, an analyst at Noble Bank said.
“The ability to use public market currency could be a growth catalyst and discussions with interested parties are underway,” analyst Poe Fratt said in note to clients, maintaining a buy rating and price target of $12.
EuroDry posted a $500,000 net profit in the second quarter of 2018 , getting off to a positive start since being spun-off from US-listed Euroseas in May.
The Nasdaq-listed company has good access to capital and is poised to take advantage of growth opportunities, Fratt said.
EuroDry chief executive Aristides Pittas recently noted that shareholders had benefited from the spin-off by having the market value of their combined EuroDry and Euroseas holdings increase by more than 40%.
However, he said EuroDry was still trading at a more than a 50% discount to NAV, something he believed would be corrected as the market “came to understand the value of this new pure bulk carrier play” and compares it with its peers.
EuroDry’s fleet is comprised of one ultramax and two kamsarmaxes built between 2016 and 2018, and three Japanese-built panamaxes built between 2000 and 2004.
