Credit Suisse Initiates Coverage on Scorpio Bulkers (SALT)
Equities researchers at Credit Suisse began coverage on shares of Scorpio Bulkers (NASDAQ:SALT) in a research report issued on Monday, TheFlyOnTheWall.com reports. The firm set an “outperform” rating and a $14.00 price target on the stock. Credit Suisse’s price target indicates a potential upside of 44.18% from the stock’s previous close.
The analysts wrote, “SALT has 52 newbuilds or 4M DWT of capacity on order, making it one of the largest global dry bulk owners (top 20),” the report said. “Following its U.S. equity raise (~$300M), SALT has ~$0.9B in cash against $1.3B in CAPEX, leaving ample capacity for incremental newbuild orders now and prompt tonnage acquisitions later (assuming modest leverage)—we expect both.” Some highlights from the report included: -”Although we believe the market hit an inflection point in mid-2013, we expect the move to midcycle rates to be more a 2015 event than 2014.”-”Christmas came early for SALT with its ~$300M equity raise and U.S. listing in mid-December 2013.”-”We believe SALT warrants a premium given its new fleet contracted at the trough in the cycle versus its peers, which have built their fleets throughout the cycle—higher average entry point.”
Shares of Scorpio Bulkers (NASDAQ:SALT) opened at 9.71 on Monday. Scorpio Bulkers has a one year low of $9.04 and a one year high of $10.18. The stock’s 50-day moving average is $9.7 and its 200-day moving average is $9.7. The company’s market cap is $1.288 billion.
Separately, analysts at Deutsche Bank initiated coverage on shares of Scorpio Bulkers in a research note to investors on Monday. They set a “buy” rating on the stock.
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