Euroseas Due For a Bounce Following OpCo Note

| About: Euroseas Ltd. (ESEA)

Oppenheimer is out on Euroseas (NASDAQ:ESEA) raising their target to $21 from $17 as they believe the company is poised to realize meaningful fleet growth.

Accordingly, ESEA has the potential to deliver solid YoY earnings growth in 2008, even if dry-bulk rates stagnate. Furthermore, ESEA's balanced fleet mix of dry-bulk and container vessels should enable the company to participate in the currently strong dry- bulk rate environment while, at the same time, increasingly capitalizing on the rapidly growing inter-Asian container trade, which appears to be well suited for the company's small container fleet.

Management's chartering and S&P strategy should continue to drive solid ROIC performance.

With the shares currently trading at 7.0x 2008 EPS estimate of $2.05, a 28.7% discount to dry- bulk universe (net ESEA), the firm believes ESEA presents compelling value in light of its growth potential.

Notablecalls: The dry-bulk space continues to be among traders' favs here. With the stock down over 1/3 over the past couple of weeks and OpCo coming out with such strong comments, it's due for a bounce.

Also, note that technically, the stock rests right above its 200MA.

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