Wednesday, February 17, 2021
Pyxis Tankers Inc. (PXS)
Strong Price Performance Shifts Risk/Reward Profile
Pyxis Tankers Inc is a United States-based international maritime transportation company which focuses on the product tanker sector. It owns a fleet which comprises of double hull product tankers employed under a mix of short- and medium-term time charters and spot charters. The fleet owned by the company includes Pyxis Epsilon, Pyxis Theta, Pyxis Malou, Pyxis Delta, Northsea Alpha, and Northsea Beta. Each of the vessels in the fleet is capable of transporting refined petroleum products, such as naphtha, gasoline, jet fuel, kerosene, diesel, fuel oil, and other liquid bulk items, such as vegetable oils and organic chemicals.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Lowering rating to Market Perform from Outperform. Risk/reward profile has shifted after strong stock price performance. The stock has moved up 126% over the past two trading days, including 93% yesterday on well-above-average trading volume (~17x the 2021 average), and is now up 257% in 2021. While we view PXS as a small cap play in the refined product tanker market that should benefit from attractive intermediate term fundamentals, the near-term outlook appears challenging. As result, we believe that the current risk/reward profile is not attractive and are lowering our rating to Market Perform.
Adjusting 2020 EBITDA estimate and introducing 2021 EBITDA estimate. Our 2020 EBITDA estimate moves to $3.7 million (from $4.0 million) based on TCE rates of $11,637/day due to softer rates. To reflect recent charters and a 2H2021 rebound, we are introducing a 2021 EBITDA estimate of $4.5 million. Our estimate is based on available days of 1,611 (+43) and TCE rates of $11,777/day. Forward cover …
This 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.
