Safe Bulkers: Idea For Income-Oriented Investors That Seek Upside Potential
Summary
- Safe Bulkers employs nine vessels under spot charters and 38 under time charters. The mix between time and spot charters pays off.
- Net revenue grew by 11% yearly to $78.5 million in 2Q24. Higher day rates combined with more available days contributed to this increase.
- The company's valuation at 47% PNAV presents significant upside potential, supported by favorable dry bulk market fundamentals. Besides that, SB offers well-secured dividends.
- SB is a combination of growth and income. That said, I give Safe Bulkers a Strong Buy rating again.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of SB, SB.PR.D either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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