Monday, June 07, 2021
Grindrod Shipping (GRIN)
Moving Price Target Up For Positive Developments
Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE.
Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Increasing 2021 EBITDA estimate. Given the firmer state of the dry bulk market, we are increasing our 2021 EBITDA to $71.1 million from $59.6 million. There is limited visibility into the second half of the year and we have to wait until August to see actual 1H2021 numbers, but operating results should be solid. Compared to 2H2020 average Supramax rates of ~$11k/day, both Supra and Handy rates are currently above $20.0k/day.
Added asset sales improve fleet profile and enhance dry bulk market focus. The sales of two MRs and one small tanker for more than $49 million is positive since it shifts the focus toward the dry bulk market and improves the fleet profile. All sales were completed this quarter …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
