Friday, November 10, 2017 1:40:16 PM
We believe SHIP is undervalued, says Maxim's James Jang; Raises price target to $3.00.
Scott Fields, Editor-November 8, 2017, 5:25 PM EDT SHARE ON:
Maxim analyst James Jang on Tuesday boosted his Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) share-price target from $2.00 to $3.00, after the company reported stronger than expected third-quarter results. The analyst pointed out that the increased long-haul iron ore trade from Brazil to the Far East helped SHIP in the past quarter. (To watch Jang’s track record, click here)
Specifically, SHIP reported net revenues of $9.4 million, operating EPS of $0.08, net income of $6.5 million, and EBITDA of $2.8 million, which were all above expectations.
Jang commented, “We believe our thesis for a dry bulk recovery is being pulled ahead and are raising our estimates for SHIP. We are now looking for revenues of $38.7 million ($34.8 million prior) in 2017, $55.5 million ($50.9 million prior) in 2018, and $70.6 million ($65.7 million prior) in 2019. Given our revenue forecast, we estimate that SHIP will report an operating loss of ($0.17) per share in 2017 (loss of $0.45 prior), operating EPS of $0.09 in 2018 (operating loss of $0.04 prior) and operating EPS of $0.29 in 2019 ($0.28 prior). And we now expect EBITDA of $13.9 million ($10 million prior) in 2017, $29.4 million ($24.8 million prior) in 2018, and $44.5 million ($39.6 million prior) in 2019.”
Jang concludes, “By our calculations, there should be a further 15%-20% increase in Capesize asset values through 2018, and with SHIP generating outsized earnings ahead of our forecast of a dry bulk recovery during 4Q17-1Q18, we believe SHIP is undervalued. Therefore, we are raising our price target to $3, from $2 and maintaining our Buy rating.”
Seanergy Maritime CEO Stamatis Tsantanis stated, “During the third quarter of 2017, the Capesize market continued its improving course that commenced in the beginning of the year. Our fleet benefited significantly from the stronger Capesize rates. In particular, in the third quarter of 2017, the daily Time Charter Equivalent (TCE) rate1 of our Capesize fleet was $11,678, increased by 149% as compared to the same period last year. For the nine months ended September 30, 2017, the daily TCE rate of our Capesize fleet was $11,017, increased by 153% as compared to the same period last year. “This was reflected in our operating results where our adjusted EBITDA1 was $2.8 million and $6.3 million for the third quarter and nine months of 2017, respectively. In regards to our profitability in the third quarter of 2017, net income stood at $6.5 million, as compared to a net loss of $5.9 million in the same period of 2016. “In addition, we completed the previously-announced refinancing of one of our Capesize vessels, generating a $11.4 million gain and equity accretion. This transaction resulted in a material increase of about 38% of the Company’s total equity value.”
“Turning to market fundamentals, in 2017 dry bulk charter rates have stabilized at higher levels than in previous years, as the Baltic Capesize Index (BCI) has averaged about 1,839 points year to date, which is 112% higher than the 868 average level recorded in the same period of 2016. Furthermore, the expected annual growth in seaborne transportation of Capesize commodities is estimated at 6% for the years 2017 and 2018 while the Capesize orderbook currently stands at 3% of the existing fleet, which is the lowest point of the last 15 years. In the fourth quarter of 2017, 63% of our Capesize operating days are fixed at an average daily rate of approximately $15,720 and 65% of our total operating days are fixed at an average daily rate of approximately $14,890 as of the date of this release,” Tsantanis continued.
Recent SHIP News
- Form SC 13G - Statement of Beneficial Ownership by Certain Investors • Edgar (US Regulatory) • 08/09/2024 08:13:13 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 08/09/2024 04:15:09 AM
- Seanergy Maritime Reports Record Second Quarter and First Half Financial Results for the Periods Ended June 30, 2024 • GlobeNewswire Inc. • 08/06/2024 12:00:00 PM
- Seanergy Maritime Announces the Date for the Second Quarter and Six Months Ended June 30, 2024 Financial Results, Conference Call and Webcast • GlobeNewswire Inc. • 08/01/2024 01:15:00 PM
- Form F-3/A - Registration statement by foreign private issuers: [Amend] • Edgar (US Regulatory) • 07/30/2024 09:30:07 PM
- Form F-3 - Registration statement by foreign private issuers • Edgar (US Regulatory) • 07/12/2024 08:34:04 PM
- Leading Shipowners Presented at the 4th Annual Capital Link Decarbonization in Shipping Forum • GlobeNewswire Inc. • 07/08/2024 03:39:35 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 06/14/2024 08:15:15 PM
- Seanergy Maritime Announces Successful Delivery of a Japanese Capesize Vessel and Two New Time Charter Agreements with Costamare Bulkers Inc. • GlobeNewswire Inc. • 06/13/2024 01:00:00 PM
- Sphinx Investment Corp. Issues Statement on Seanergy • Business Wire • 06/03/2024 08:44:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/31/2024 06:45:52 PM
- Seanergy Maritime, CEO, Stamatis Tsantanis Interview at Schwab Network • GlobeNewswire Inc. • 05/31/2024 05:27:07 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/17/2024 08:15:19 PM
- Seanergy Maritime Reports Record Financial Results for the Quarter Ended March 31, 2024 and Declares Cash Dividends of $0.15 Per Share • GlobeNewswire Inc. • 05/15/2024 01:00:00 PM
- U.S. Index Futures Flat Ahead of April CPI Data Release, Oil Prices Drop • IH Market News • 05/15/2024 11:50:05 AM
- Seanergy Maritime Announces the Date for the First Quarter Ended March 31, 2024 Financial Results, Conference Call and Webcast • GlobeNewswire Inc. • 05/09/2024 01:00:00 PM
- Seanergy Maritime Announces Availability of its 2023 Annual Report on Form 20-F • GlobeNewswire Inc. • 04/03/2024 08:05:00 PM
- Seanergy Maritime Reports Financial Results for the Fourth Quarter and Twelve Months Ended December 31, 2023 and Declares a Cash Dividend of $0.10 Per Share • GlobeNewswire Inc. • 03/15/2024 01:00:00 PM
- REMINDER - Leading Dry Bulk & Container Shipping Companies Participating at Capital Link’s 18th Annual International Shipping Forum Monday, March 11, 2024 in New York City • GlobeNewswire Inc. • 03/06/2024 02:00:00 PM
- Seanergy Maritime Announces the Date for the Fourth Quarter and Year Ended December 31, 2023 Financial Results, Conference Call and Webcast • GlobeNewswire Inc. • 03/05/2024 02:00:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/14/2024 09:09:50 PM
- Leading Dry Bulk & Containers Shipping Companies Participating at Capital Link’s 18th Annual International Shipping Forum Monday March 11, 2024 in New York City • GlobeNewswire Inc. • 02/13/2024 04:27:51 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/31/2024 09:05:15 PM
- Seanergy Maritime Achieves Key Partnership with European Union Funding and Major Industry Stakeholders Under SAFeCRAFT to Revolutionize Maritime Propulsion for Existing Vessels • GlobeNewswire Inc. • 01/30/2024 01:30:00 PM
- Form SC 13D/A - General statement of acquisition of beneficial ownership: [Amend] • Edgar (US Regulatory) • 12/28/2023 10:15:14 PM
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