Star Bulk leads dry bulk shippers higher as Pareto raises to Buy

Sep. 20, 2022 3:54 PM ETStar Bulk Carriers Corp. (SBLK)M, DSX, EGLE, GOGL, NM, NMM, SB, SHIP, GNK, BDRYBy: Carl Surran, SA News Editor17 Comments

Bulk Carrier

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Star Bulk Carriers (NASDAQ:SBLK) +10.4% in Tuesday's trading after Pareto Securities upgraded shares to Buy from Hold with a $25 price target, a day after posting its lowest YTD closing price of $18.81.

"Dry bulk has gone from extreme optimism to pessimism this year," Pareto analyst Eirik Haavaldsen wrote. "While we remain far below consensus in 2023, we find SBLK's diversified scrubber fleet, fortress-like balance sheet and predictable dividend policy worth a punt."

Other dry bulk shippers also sport strong gains: (GOGL) +7.3%, (DSX) +5%, (GNK) +7.2%, (EGLE) +9.6%, (SB) +6.8%, (SHIP) +6.8%, (NM) +4.4%, (NMM) +3.7%.

The Breakwave Dry Bulk Shipping ETF (BDRY), which tracks a basket of dry bulk freight futures, had ranked with crypto funds near the bottom of this year's ETF standings, -65% YTD after skyrocketing 283% in 2021.

Liquidity and profitability ratios indicate that both Star Bulk Carriers (SBLK) and Golden Ocean can stay profitable even with lower TCE rates, SM Investor writes in a bullish analysis published recently on Seeking Alpha.

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